MGM Osaka targets late 2030 opening for $9.5bn integrated resort

Project timeline and partners

MGM Osaka is building toward a late 2030 opening, according to the project team. A partnership between MGM Resorts International and Japan financial services conglomerate Orix Group, the estimated ¥1.5 trillion (US$9.5 billion at current exchange rates) integrated resort is rising on Yumeshima island, site of World Expo 2025.

The 49-hectare (122-acre) site represents Japan’s largest current construction project. Longtime Orix executive Nobuki Watanabe serves as chairman of MGM Osaka, with Ed Bowers as CEO. The railroad arm of Kintetsu Group is among 22 mainly local investors holding a collective 12% of MGM Osaka.

An Osaka subway station, partially funded by MGM Osaka, opened in January last year for Expo visitors.

Resort specifications

IR floor space will total 780,000 square metres (8.4 million square feet), according to the 31 July update of the area development plan. The IR overall is projected to have 2,500 guest rooms, more than 20% of them suites measuring 105-150 square metres, in three hotels.

MGM Osaka will have one of Japan’s largest MICE facilities with 400,000 square feet (36,171 square metres) of conference space and 330,000 square feet of exhibition space, plus a 3,500-seat theatre.

Gaming facilities are limited to 3% of total floor area – 23,400 square metres for MGM Osaka. Japan nationals must pay a ¥6,000 entry fee per visit, valid for 24 hours, and are limited to three visits in seven days and 10 visits in 28 days.

Revenue projections

Updated ADP estimates put IR annual revenue at ¥520 billion, with gaming revenue accounting for ¥420 billion, or US$2.65 billion. Bowers expects half of revenue from Japanese customers.

Japan reached 42.68 million international arrivals last year and is on pace to top 41 million this year. The country registered ¥8,874 billion in legal betting last year on racing from boats to bicycles, including US$22 billion on horse racing, nearly 20% of the global total.