MGM To Invest $9 Billion In Osaka Casino

MGM To Invest $9 Billion In Osaka Casino

MGM Resorts International is planning to invest $9 billion in the Japanese Osaka Casino resort. Earlier this month, the company had announced a partnership deal with the Japanese firm ORIX to place a bid for the Osaka IR license.

MGM chairman, Jim Murren, said that “MGM Resorts International is focused on finding the right mix of [Osaka] companies aligned in their vision and culture that we are trying to create.”

Osaka has already invited applications from gambling operators and developers for the IR license as it is looking to have a casino resort operational by 2025.

The competition for the Japanese IR license is high and many top gambling companies including, Genting Malaysia, Las Vegas Sands, and regional players like Melco vying for the casino license.

In its announcement, MGM also said that their casino project will generate employment to the tune of 15,000 jobs. They will also channel the investment through at least 10 local companies.

Ed Bowers, chief executive of MGM Resorts Japan, the company’s Japanese subsidiary, said “We will include other Kansai companies in our consortium, say, more than 10 companies.MGM and Orix will each hold significant equity, and other companies will have smaller equity stakes.”

The Japanese government is yet to announce its official basic guidelines for the integrated casino license. As such many other competitors are awaiting the official guidelines to make their respective announcements.

“We don’t have an artificial cap for the number of companies inside and outside the consortium to partner with.” He said it was a matter of finding the “right mix of companies aligned in their vision and culture that we are trying to create,” explained MGM chairman Jim Murren.

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