Following the successful 2025 World Expo, Japan is looking to develop new tech and leisure facilities on Yumeshima Island, future home of MGM Osaka.
Almost 50 years ago, Japan created an artificial island on Osaka Bay to host a container terminal and waste disposal plant. The landfill site is now being transformed into a “global tourism hub”, part of a 2017 plan to bring more industry and investment to Osaka Prefecture.
A sprawling integrated resort, MGM Osaka, will anchor the destination. The US$3.92 billion (JPY28 billion) IR, a joint venture of MGM Resorts International and Japanese developer Orix Corporation, is expected to open in 2030.
World Expo set the stage for MGM Osaka
Yumeshima just finished hosting the 2025 World Expo, with the theme “Designing Future Society for Our Lives”.
The run-up to the six-month event was marked by cost overruns, construction delays and tepid public interest. But to the surprise of many, the expo was a resounding success. More than 25 million attendees interacted with exhibitors from 158 nations. Pavilions showcased next-generation innovations in tech, health care and sustainable energy. Guests marvelled at futuristic products like flying cars, an artificial heart grown from stem cells, and an AI-driven robot that guides the visually impaired.
According to the Japan Times, the expo, which ended at 10pm Monday, could yield $3.92 billion in profits. And the former event grounds will serve as the building blocks for a forthcoming tech hub and entertainment destination. According to the plan, a cluster of commercial and leisure amenities will flank the massive IR. Together, they will contribute significantly to the local economy.
On its own, MGM Osaka is expected to draw 20 million people a year. Along with Japan’s first casino, it will include MICE facilities, hotels, restaurants, retail stores and entertainment venues. Orix Kansai region representative Toyonori Takahashi has said the resort will rival proven IRs in Asia, “particularly in Macau and Singapore”.
Public still divided on Japan casinos
Hideyuki Araki of Resona Research Institute believes new development on Yumeshima will support all stakeholders. “The expo site is vast, and synergy with the IR is expected,” he told the Japan News. “It is important not to simply end the project with a large-scale development, but to adopt strategies with a medium- to long-term economic outlook.”
So far, investors have floated proposals for the island like a Formula 1 racetrack, more luxury hotels and a water park.
But the IR itself remains “controversial”, according to the Times. A November 2024 survey reported that almost one-third of Japanese continue to oppose the IR due to concerns about gambling addiction. The survey said 30.6% support the idea, and 36.7% said they are neutral.
Kobe University sociology Professor Hiroki Ogasawara speaks for the opposition. He said casinos are built on “greed, desire [and the] pursuit of economic wealth for only a handful of people”.
Osaka Governor Hirofumi Yoshimura takes the opposite view. At the April groundbreaking of MGM Osaka, he said the IR “will create an overwhelmingly extraordinary space, generating new demand in tourism and business and serving as a catalyst for Osaka’s economic growth”.
AloJapan.com