Japan has approved a plan to build the country's first casino, which will be located in the western city of Osaka, according to Reuters.
The 1.8 trillion yen resort is set to open in 2029, attracting domestic and international tourism. It will be a huge resort complex on Yumeshima that will include hotels, a conference center, a shopping mall, a museum, and a ferry terminal. High-rollers will have access to an adjacent helicopter pad.
Casinos have been illegal in Japan for decades, but the country has recently legalized them to promote tourism and boost the economy. In July 2018, Japan passed a law that allows the construction of up to three integrated casino resorts in the country. These resorts are expected to feature hotels, shopping centers, and conference facilities, as well as casinos.
In addition, casino plans in Japan have also been postponed due to the coronavirus pandemic and a bribery scandal, which led to the arrest of a higher-profile lawmaker. With this, major casino operators withdrew from planned projects.
It was only Osaka and the southwestern prefecture of Nagasaki submitted bids by an April 2022 deadline.
Why Japan?
Japan's affluent population is attractive to many casino operators. In addition, it is close to Asia's wealthy gamblers.
MGM Resorts International and local partner Orix Corp have headed the Osaka IR project, with each owning a 40 percent stake in the company to set up and manage the complex.
There are other 20 companies that hold the remaining 20 percent, based on a government document, such as the MUFG Bank and Sumitomi Mitsui Banking Corp will provide 550 billion yen of project financing for the resort.
The resort will contribute to the economic growth of the Kansai area around Osaka and greater Japan after World Expo 2025. This is also a part of the country's efforts to rebound from the post-pandemic in tourist spending.
The resort is targeting 520 billion yen of revenue every year, most specifically from the gaming business. It is predicted to attract six million international tourists and 14 million domestic visitors.
The decision to allow a casino to be built in the country comes after the pro-casino Japan Innovation Party retained the prefectural governor and city mayor offices in Osaka.
Casino gambling is a relatively new concept in Japan, and there is some opposition to the construction of these resorts. However, proponents argue that casinos will create jobs, attract international tourists, and generate revenue for the country.
Overall, the introduction of casinos in Japan is expected to have a significant impact on the country's economy and tourism industry.
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