As the Japanese government officially confirms the reopening of the IR license application in May 2027, the global gaming industry's attention is once again focused on the East. However, unlike the fervor of many years ago when many competitors vied for supremacy, the market now exhibits more caution—only the MGM Osaka project succeeded in the first round of bidding, becoming the sole "seedling" for the construction of integrated resorts in Japan. This seedling, costing $10 billion and expected to open in 2030 with an annual GGR projected at $5.9 billion, serves as the freshest reference sample for the second round of bidders. Simply put, it's about letting MGM test the waters first, so that the followers can learn.
Osaka Sample: The Demonstrative Effect Behind a $10 Billion Investment
The MGM Osaka project broke ground in April last year, being the first and currently the only approved IR in Japan. The CEO of MGM Japan admits that the road has not been easy and challenges remain before the opening. However, this project is of significant importance to the second round of bidders: it validates the feasibility of the Japanese IR market, showcases the collaboration model with local giant Orix, and with a projected annual GPR of $5.9 billion, provides a concrete anchor for market potential. As potential applicants like Aichi and Hokkaido start preparing their materials, every step MGM takes will serve as a benchmark for them to learn from.
Second Round Candidates: Learning from Nagasaki's Lessons
Nagasaki Prefecture had partnered with an Austrian casino in the first round but failed due to financing issues. It is now poised for a comeback in the second round. The governor of Aichi Prefecture withdrew during the first round due to the pandemic but has already expressed intentions to participate this time. The governor of Hokkaido previously declined due to environmental concerns but is now reassessing, with its potential partner Hard Rock International having released renderings of a guitar-shaped hotel as early as 2019. These candidates will draw from both Nagasaki's failures and Osaka's advancements, especially in terms of the robustness of financing structures and integration with local communities and the environment.
Political Endorsement: From Abe to Takashi, Continuation of IR Policies
The late former Prime Minister Shinzo Abe had strongly advocated for IRs to attract foreign capital and tourists, and his political protégé, current Prime Minister Sanae Takaichi, is believed to support this development as well. She instructed the Commissioner of the Tourism Agency to promote IRs immediately after her election in October last year, aiming to create attractive accommodation-based tourism. The continuity of policies at the political level provides a stable expectation for the second round of bidding. Want to know the latest updates on integrated resorts in Asia? PASA official website keeps you updated.
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