Osaka had previously stated that it would begin selecting an IR partner by this spring. However, in an interview with Bloomberg TV, Murren explained: “We’re going to know probably in the next three or four months what the timing is going to be for Osaka.”
With regards to the request for proposals (RFP) solicited by Osaka, he added: “The city government will present an RFP. It will be very competitive. MGM is going to be one of the bidders for that RFP, and I think they will make a decision [on preferred partners] about this time next year.”
Ever since the term IR was first whispered in the Japanese government, MGM has been anxious to be included. It specifically likes Osaka for a resort and, while it would prefer to be an independent IR developer in Japan, Murren realizes that the ultimate decision on a casino partner will most likely involve some type of consortium.
Murren added about the bid for Osaka, “We made the decision to focus all our energy on Osaka… We believe Osaka is going to be the first integrated resort location” in the country. “The government’s very excited about it. They won the World Expo just recently. It’s going to happen in 2025.”
After the cities are chosen for the IRs and the casino operators are selected, there still has to be approval by the Japanese government on those partnerships. There is still a long path ahead of any IR launch and, if cities expect to launch in 2024 or 2025, they’re going to have to pick up the pace.
Last week, Japanese Prime Minister Shinzo Abe’s cabinet approved regulations for gambling resorts, the first of which could open in Osaka as soon as 2024 and provide a new source of tax revenue. By opening casinos, Japan “will seek to become an advanced country for tourism,” said Abe. The area for the casino must make up no more than 3% of the total area of the resort.
Source: GMB / Calvin Ayre
