Osaka’s delight: Japan’s inaugural casino resort gets green light
Japanese authorities have granted approval for the development of Japan’s inaugural casino resort in Osaka, signalling a significant departure from the country’s long standing prohibition on casinos.
Approval granted for ground breaking casino resort
While casinos have traditionally been illegal in Japan, a legal ruling in 2018 introduced exceptions for certain games like poker and baccarat. The aim of the law is to generate employment opportunities and boost tourism, according to the BBC.
Scheduled to launch in Osaka in 2029, the expansive complex will encompass a vast 5.3 million-square-foot area, going beyond the scope of a mere casino. Alongside the casino, the resort will feature a luxurious hotel, a cutting-edge conference centre, and an upscale shopping mall. Additionally, visitors will have the opportunity to explore a captivating museum, providing a comprehensive entertainment experience.
Public sentiment surrounding the initiative remains divided, with concerns raised about potential increases in crime rates and gambling addiction. Detractors argue that legalising casinos could lead to a surge in problem gambling and associated social issues. Conversely, proponents believe that the project will invigorate the economy and attract international tourists.
Prime Minister Fumio Kishida expressed his hope that the casino resort would serve as a thriving tourism hub. This ambitious undertaking, valued at an initial investment of 1.8 trillion yen ($13.5 billion), will be jointly owned by US-based casino operator MGM and Japan’s Orix Group. Each entity will hold a 40% stake in the venture, while the remaining 20% will be owned by local companies such as West Japan Rail, Kansai Electric Power, and Panasonic.
Situated in the Kansai region of Honshu, Osaka is the thriving capital and most populous city of Osaka Prefecture. It holds the esteemed status of being the third most populous city in Japan.
Anticipating a boon from resort’s Influx
Japanese officials have high expectations for the resort in Osaka, projecting an estimated annual influx of 20 million visitors and generating approximately 1 trillion yen in economic benefits for the region, as reported by BBC. This anticipated surge in tourism and revenue is poised to create employment opportunities and rejuvenate the local economy.
However, the project has faced setbacks due to the impact of the Covid-19 pandemic and a corruption scandal involving a ruling-party lawmaker accused of accepting bribes while overseeing casino policies. These challenges have led to a revised timeline for the completion of the resort.
Given Japan’s position as the world’s third-largest economy and a population of approximately 126 million, it is seen as a promising market for the gambling industry. The country’s geographical proximity to affluent Asian gamblers, particularly from China, adds to its appeal. With Macau being the only Chinese city where casino gambling is legal, Japan presents an attractive opportunity for international casino operators.
In a similar vein, the Nagasaki prefecture has submitted a proposal to develop a casino within Huis Ten Bosch, a Dutch-themed amusement park, signalling a growing interest in the establishment of integrated resorts in Japan.
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