The initial investment required to develop an integrated resort in Osaka is expected to increase by around US$1.3 billion as a result of soaring prices for construction materials, officials announced Tuesday.
The amendment to Osaka’s area development plan has also revised the opening date of the IR – to be developed by consortium led by MGM Resorts and its local partner ORIX – by a year from autumn 2029 to autumn 2030, according to The Japan Times.
The delay, authorities noted, was due to the central government initially taking a year to approve the Osaka-MGM proposal. Another proposal by Nagasaki and its preferred partner Casinos Austria remains in limbo with the central government allegedly seeking more information around funding.
While MGM Resorts has touted a near US$10 billion investment to build its Osaka IR, Osaka officials said Tuesday that the initial investment required has originally been estimated at JPY 1.08 trillion (US$7.31 billion) but this had now increased to JPY 1.27 trillion (US$8.60 billion).
The revised plan has been forwarded to the central government for approval before Osaka and the MGM-ORIX consortium can finally sign a long-awaited implementation agreement.
The delay to the resort’s opening date comes as no surprise, with MGM Resorts CEO and President Bill Hornbuckle having stated in May that he didn’t expect the Osaka IR to open in 2029. Osaka Governor Hirofumi Yoshimura also acknowledged in July that a 2029 opening would be “difficult”.
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