MGM Resort Partners With Orix Corp To Make Osaka Casino Resort a Reality

According to local media outlets, a financial service group from Japan, Orix Corp, has ed forces with US-based operator, MGM Resorts International, to bring the concept of Osaka integrated casino resort to life. Makoto Inoue, CE from Orix announced that two companies…

…formed a consortium for the Osaka bid.

Conquering The Eastern Market

Ever since the approval of IR (Integrated Resort) in Japan after numerous years of debates, the operators worldwide are trying to find a way to become visible in this new distant market. Even though there is constant turbulence and concerns about a legislation that could potentially lead to gambling-related issues…

…giants like MGM didn’t lose their hope to be one of the first three operators to get the approval to operate.

To Osaka with IR project, they opened a local office. The goal is, as MGM’s, Jim Murren says, that both sides (Osaka and MGM) understand each other better. Already positioned in Asia, MGM is the parent of Macau casino operator, MGM China Holdings Ltd. The Japanese venture is a part of their strategy to expand on eastern markets.

In addition to this, Macau granted MGM China Holdings with an extended license through 2022.

Who Gets The Major Equity Position?

According to the media, the consortium should provide two companies with the same amount of equity, with “Osaka corporations” holding the rest. However, there is still no clear information on…

…the proposed size of the venture which will be held by MGM and Orix.

Nevertheless, MGM previously announced that, if the situation permits, they are interested in having the major share in any consortium. As a matter of fact, the company seems to be doing good in regards to (potential) expansion on the Japanese market. Major League Baseball ties may help them in making a footmark there.

Anticipations On Osaka’s Decision

As far as Murren sees the situation, Osaka will make up its mind on the deal this time next year. The significant impact of this is that the city will have its choice of private-sector partners it plans to work with when pitching to the national government for venue hosting rights. Market liberalization should allow…

…three establishments maximum at its first stage.

Elections for the post of City Mayor as well as Prefectural Governor in Osaka are due for April 7th. This could lead to changes in control of the Liberal Democratic Party which currently holds the balance of power at the national level.

As for the consortium, it is expected to serve as the basis for Orix and MGM’s respond to the expected “request for proposal” from authorities in Osaka.

Source:

“MGM links to finance group Orix for Osaka bids: reports”, ggrasia.com, March 25, 2019.