Japan approved a plan to build the country’s first casino in Osaka on Friday, April 14, 2023. The project aims to attract domestic and international tourist spending through a large resort. The project, put forth by the city administration and Osaka prefecture, includes opening a casino, conference centre and other facilities in 2029 with $13.5 billion of the initial investment.
MGM Resorts International, a US-based casino operator and Orix Corp, a local partner, will lead the Osaka IR project. Each firm holds a 40 per cent stake in the company set up to manage the complex. Furthermore, a local government document stated that the Osaka-based Panasonic, Kansai Electric Power and West Japan Railway have the remaining 20 per cent stake.
The resort complex will include a hotel, shopping mall and ferry terminal on the 492,000 square-metre lands in Yumeshima, a reclaimed island in Osaka Bay. Moreover, Japan plans to host the World Expo on the island in 2025. The collective annual revenue target of the resort from the gaming business is around $4 billion. According to the forecast in the project documents, it will attract 6 million international tourists and 14 million domestic visitors.
The pro-casino Japan Innovation Party retained the office of prefectural governor and city mayor in Osaka. It led to the national government’s decision to open the first casino in Japan.
Japan’s first casino plans faced several hindrances, like the coronavirus pandemic and bribery scandal. Previously, casinos and other private gambling were illegal in Japan. The gambling crimes in Japan are ‘simple gambling’ and ‘habitual gambling.’ If a person commits habitual gambling, they can end up in jail for three years.
But in 2018, an integrated resort law provided exceptions to casino games like poker or baccarat at officially approved places to attract tourists. Many experts view Japan as a prized market for casino operators due to its wealthy population of 126 million. The country will be close to Asia’s wealthy gamblers. However, opinion polls have shown many citizens worry about addiction and crime.
