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Japan – MGM Osaka to be more profitable than Singapore’s casinos

By - 19 April 2023

CBRE Equity Research believes that MGM’s US$10bn casino resort will be more profitable than Marina bay Sands and Genting Sentosa in Singapore with estimated earnings of US$2bn making it one of the most profitable casinos in the world.

CBRE Equity Research analyst John DeCree said: “Osaka is one of the largest MSAs (metropolitan statistical areas) in the world with a population of over 19 million and sees over 12 million foreign tourists per year. The local population in Osaka is three times larger than in Singapore, and while Singapore draws more foreign tourists, Osaka more than makes up for that in domestic tourism.

“Osaka is a quick 90-minute flight or two-hour bullet train from Tokyo, giving MGM access to an even greater population base with no other domestic casino options potentially for several years.”

“It is possible that Osaka is such a big market MGM may not be able to build enough hotel rooms and gaming supply to fully capture our estimated TAM,” he explained. “Moreover, MGM/Osaka’s proposed revenue forecast likely assumes competition in Tokyo, which could be several years behind MGM. That said, we think the EBITDA potential for the MGM Osaka IR could be upwards of US$2bn, making it one of the most profitable casinos in the world.”

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