Construction has officially begun on Japan’s first integrated resort with a casino, as MGM Osaka held its groundbreaking ceremony on Thursday. The event, hosted by Osaka IR KK, the project’s promoter, was attended by Osaka Governor Hirofumi Yoshimura and representatives of MGM Resorts International and Japan’s Orix Corporation, the lead partners behind the ¥1.27 trillion ($8.8 billion) development.
Located on the man-made island of Yumeshima in Osaka Bay, MGM Osaka is scheduled to open in the autumn of 2030. The project marks a key milestone in Japan’s long-debated foray into legalized casino gaming.
Once operational, it is expected to generate around $5.9 billion annually in gross gaming revenue, positioning Japan as the world’s third-largest gaming market after the United States and Macau, according to Bloomberg Intelligence.
MGM Osaka will feature a casino, three hotels with approximately 2,500 rooms, and extensive convention and entertainment facilities, including a 3,500-seat theater, 330,000 square feet of exhibition space, and 400,000 square feet of conference areas. Dining and retail outlets are also part of the expansive master plan.
“In collaboration with Osaka Prefecture and Osaka City, this project… is expected to contribute to the development of Japan’s tourism industry and the growth of the Kansai region,” a press statement reads.
The complex’s timeline coincides with the tail end of Expo 2025, also hosted on Yumeshima Island. To minimize disruption during the event, construction will be scaled down on peak days and the use of heavy machinery delayed until after the Expo concludes in October.
The resort will benefit from enhanced transportation access. A new Osaka Metro station opened in January to serve Expo 2025 and eventually MGM Osaka, while the Kintetsu Nara Line is being extended to further improve connectivity before the resort opens.
Following earlier opposition to casino legalization in Japan, the MGM-Orix project is now the only approved integrated resort under the country’s limited three-license framework. A proposal from Nagasaki was rejected in 2023, leaving MGM Osaka with a temporary monopoly in Japan’s nascent gaming market.
Financially, the project is backed by a ¥530 billion ($3.68 billion) debt financing package led by Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp., with investments from regional businesses in Osaka.
Still, industry analysts caution that challenges remain. Japan faces a shrinking labor force, competition from other Asian casino markets, and growing popularity of online gambling, particularly if Japan moves toward legalization.
“There’s very little doubt that it will go ahead. There’s a license,” said Daniel Cheng, a former Hard Rock executive, as per a Bloomberg report. “But whether it meets the target opening of fall 2030—that’s not so certain because nobody’s built something like this in Japan before.”
To address social concerns, Japanese residents will be subject to entry restrictions, including a per-visit fee and limits on how often they can enter the casino each week. Meanwhile, a lawsuit filed by local opponents continues to challenge the project, citing potential social costs.
AloJapan.com