{"id":288330,"date":"2023-09-05T15:52:34","date_gmt":"2023-09-05T20:52:34","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=288330"},"modified":"2023-09-06T19:02:02","modified_gmt":"2023-09-07T00:02:02","slug":"mgm-japan-casino-opening-delayed-costs-surge-by-1-2b","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/mgm-japan-casino-opening-delayed-costs-surge-by-1-2b\/","title":{"rendered":"MGM Japan Casino Debut Pushed to 2030, Cost Surges $1.29 Billion"},"content":{"rendered":"

MGM Resorts International\u2019s planned casino resort in Osaka is contending with delays and higher-than-expected costs due to global inflation.<\/p>\n

\"MGM
A rendering of MGM Osaka. The project is now expected to open in fall or winter or 2030 and is seeing costs rise by $1.2 billion. (Image: MGM Resorts International)<\/figcaption><\/figure>\n

The Las Vegas-based casino giant is partnering on the project with Japanese financial services conglomerate Orix and in April 2022, they were awarded rights to develop the integrated resort in Japan\u2019s third-largest city. At that time, it was expected the venue could open in fall or winter 2029. That timeline has now been pushed back to autumn or winter 2030.<\/p>\n

The delay came about because the plan did not win central government approval until April of this year,\u201d reports The Japan Times<\/em>. \u201cOnce the revised plan receives central government approval, the Osaka governments aim to sign a contract with the operator for the casino resort, possibly as soon as this month.\u201d<\/p><\/blockquote>\n

MGM and Orix each control 40%<\/a> of the project, with the remaining 20% allocated to a group of local investors.<\/p>\n

Inflation Leads to Higher Costs for Japan Casino<\/h2>\n

Since early 2022, there have been concerns that soaring inflation<\/a> would sap the US casino industry. That hasn\u2019t happened in earnest, though some evidence suggests that cost-conscious consumers in regional markets are dialing back gaming spending.<\/p>\n

\n

However, the Japan casino project is feeling the effects of rising global inflation. The initial investment needed to move the Osaka gaming venue forward is forecast to rise by $1.29 billion, or 17.6%, owing to rising construction materials prices. Originally, the project was estimated to cost $8.1 billion. Still, with soaring commodity prices, that price tag is now in the $9.3 billion area.<\/p>\n<\/div>\n

MGM and Orix will foot the higher costs, meaning their stakes in the project will increase to 42.5% apiece, while the local consortium will see its interest pared to 15%.<\/p>\n

MGM executives have highlighted the advantages of being a minority partner<\/a> in the Osaka project. They note that status minimizes upfront capital commitments and risk while providing the operator ample upside potential.<\/p>\n

Japan Casino Worth it for MGM, Orix<\/h2>\n

The road to integrated resorts in Japan has been beset by bureaucratic delays, policy missteps and other snafus — so much so that other well-known operators abandoned efforts to apply for licenses in the country.<\/p>\n

MGM stuck with its Osaka plans, and while delays and cost overruns are clearly issues, the operator could be rewarded for its steadfast approach to Japan\u2019s third-largest city. By some estimates, the venue could generate sales of $4 billion<\/a> in its first year of operation and return on invested capital in the teens after it fully ramps up.<\/p>\n

Some analysts believe that when the Osaka integrated resort fully ramps up, it could threaten Marina Bay Sands and Resorts World Sentosa — Singapore\u2019s two gaming properties — for the title of most profitable casino hotel in the Asia-Pacific region.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

MGM Resorts International\u2019s planned casino resort in Osaka is contending with delays and higher-than-expected costs due to global inflation. The Las Vegas-based casino giant is partnering on the project with Japanese financial services conglomerate Orix and in April 2022, they were awarded rights to develop the integrated resort in Japan\u2019s third-largest city. At that time, […]<\/p>\n","protected":false},"author":46,"featured_media":268798,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,62],"tags":[81913,81897],"acf":[],"yoast_head":"\nMGM Japan Casino Opening Delayed, Costs Surge By $1.2B<\/title>\n<meta name=\"description\" content=\"MGM Japan casino debut pushed to 2030, costs spike by $1.2 billion.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/mgm-japan-casino-opening-delayed-costs-surge-by-1-2b\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MGM Japan Casino Opening Delayed, Costs Surge By $1.2B\" \/>\n<meta property=\"og:description\" content=\"MGM Japan casino debut pushed to 2030, costs spike by $1.2 billion.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/mgm-japan-casino-opening-delayed-costs-surge-by-1-2b\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-05T20:52:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-07T00:02:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/04\/MP-3-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-japan-casino-opening-delayed-costs-surge-by-1-2b\/\",\"url\":\"https:\/\/www.casino.org\/news\/mgm-japan-casino-opening-delayed-costs-surge-by-1-2b\/\",\"name\":\"MGM Japan Casino Opening Delayed, Costs Surge By $1.2B\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-japan-casino-opening-delayed-costs-surge-by-1-2b\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-japan-casino-opening-delayed-costs-surge-by-1-2b\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/04\/MP-3-scaled-1.jpg\",\"datePublished\":\"2023-09-05T20:52:34+00:00\",\"dateModified\":\"2023-09-07T00:02:02+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"MGM Japan casino debut pushed to 2030, costs spike by $1.2 billion.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-japan-casino-opening-delayed-costs-surge-by-1-2b\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/mgm-japan-casino-opening-delayed-costs-surge-by-1-2b\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-japan-casino-opening-delayed-costs-surge-by-1-2b\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/04\/MP-3-scaled-1.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/04\/MP-3-scaled-1.jpg\",\"width\":1200,\"height\":800,\"caption\":\"A rendering of MGM Osaka. 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