The Osaka prefectural administration has embarked on an ambitious project to develop an Integrated Resort (Japan Osaka Casino Resort) on the man-made Yumeshima island in Osaka Bay. An agreement has been reached between Osaka’s officials and a prominent developer. Originally scheduled for launch in 2029, the project has faced delays and bureaucratic hurdles, pushing the opening to the fall of 2030, after the conclusion of the 2025 World Expo in Osaka. The Osaka IR, in partnership with MGM Resorts International and Orix, is at the forefront of this venture, which aims to introduce Japan’s first state-of-the-art Japan Osaka Casino Resort.
Anticipation for the IR project is understandable, given its potential to transform Japan’s entertainment landscape, significantly expand the local economy, and further strengthen online casinos in Japan. In addition, the project’s emphasis on integrating state-of-the-art amenities and attracting international tourists will contribute to Japan’s broader tourism goals.
Integrated Resort Implementation Plan
In late 2023, the national and local governments signed an implementation plan with the developer, outlining key events. Following assessment, the developer’s initial implementation cost estimate increased from 1.08 trillion Yen to 1.27 trillion Yen, mainly due to inflation-driven rises in construction material costs. MGM Resorts Japan and Orix agreed to increase their share value to cover these additional expenses.
The project’s first phase will involve preparatory work on Yumeshima, a man-made island, starting in October. This includes soil strengthening to prevent future soil liquefaction, scheduled for completion in October. Additional ground preparations, such as establishing infrastructure for electricity and water, are planned for the summer of 2024. Major construction of the facility is set to commence in the spring of 2025. Upon completion, the resort will feature a variety of amenities, including restaurants, hotels, an international meeting space, and a theater. The centerpiece will be the casino hall, offering a wide array of classic and contemporary casino games, making it the main attraction of the island resort.
Implication of a Japan Osaka Casino Resort
While gambling is strictly prohibited by Japanese law, with only limited exceptions such as select motorsports and horse races, Osaka’s new integrated resort (IR) will operate outside these regulations. The casino operator will seek a license from the central government, allowing it to bypass existing restrictions.
Market experts anticipate significant financial gains from the IR, with projections suggesting it could generate over 520 billion Yen in sales within its first year, with the casino accounting for 80 percent of this revenue. While this promises economic stability for Japan, concerns about potential negative impacts, such as gambling addiction, have been raised. However, proponents argue that a well-regulated gambling environment, like the one envisioned in Japan, offers better control and oversight than unregulated online casinos, which are readily accessible to anyone regardless of local regulations.
Many countries are moving towards regulated gambling as they recognize the revenue lost to unlicensed online platforms. Regulated gambling ensures responsible gaming practices and maximizes economic benefits. By implementing robust regulations and responsible gambling policies, Japan aims to balance economic growth and social welfare, making the Japan Osaka Casino Resort a potential boon for the local economy and tourism industry.
The Tourism Factor
Japan’s tourism industry thrived before the pandemic, with over 30 million visitors annually. However, travel restrictions imposed during the COVID-19 epidemic significantly impacted tourism, and the country is now striving to recover to pre-pandemic levels. To revitalize the sector, the government has embarked on various initiatives to attract visitors and boost tourism. Among these initiatives are projects that have the potential to elevate Japan to the forefront of global travel destinations.
Key contributors to the resurgence of Japan’s tourism industry include major events like the 2020 Olympics and the upcoming 2025 World Expo, scheduled to take place on Yumeshima Island, where the IR resort is currently under construction. With the opening of the IR Japan Osaka Casino Resort in 2030, Japan is poised to solidify its position as one of the world’s most captivating tourism destinations.
Final Thoughts
The country’s strategy to open its first IR Japan Osaka Casino Resort by 2030 promises to be a game changer for its economy, given the predicted income returns and implications for the tourism industry. The road to such radical ideas has been challenging, but Osaka represents a significant step forward for the originally stated plan to establish three IRs in the country. The implementation plans for the other two IRs may soon become a reality.
