Japan sets sights on Osaka for first casino resort

Japan spent several years trying to push legislation that would allow it to see casino resorts legalized in the country. This finally happened in July2018 when the National Diet, the legislative body in Japan, under the rule of then-Prime Minister Shinzo Abe, passed a law that legalized casino resorts, and charted plans for the arrival of three integrated resorts that would be built in the country over the following decades.

The years since 2018 have been fraught with bidding for the right to build the first such property, tied to significant economic boon to individual regions, the country as a whole, and private investors. Japan has been patiently waiting for prefectures to submit their bids, which in turn, were backed by local and international companies. Now, after five years since the legislation was passed, Japan may be finally looking to approve Osaka as the nation’s first casino location.

According to reports by The Strait Times and Bloomberg, the government of Prime Minister Fumio Kishida is poised to sign off on the prefecture to host the first integrated resort which should open at some point in H2 2029. Both media were citing another media, Jiji, which has suggested that cabinet ministers will be gathering on Friday to give their final stamp of approval.

Naturally, the news has already impacted gambling stocks with Tokyo Orix and MGM Resorts International, the two companies that have secured the rights to develop a property in Osaka, should the prefecture be selected, reaping early benefits. Japan is hopeful that the integrated resorts could reestablish it as a tourist destination in Asia, as the country is looking to attract 60m tourists a year by 2030 – the pre-pandemic levels.

However, Osaka may not be the only winner. The government could in fact approve all three locations for the upcoming resorts, with Osaka hosting the first sight. Other prefectures are also applying for the chance to get first dibs, including Nagasaki. Clearing up what prefectures could host resorts in futurenow, though, would have significant implications for their planning, as they would be able to not operate in uncertainty, but make concrete plans.

There is no final confirmation on how many locations will be approved with the expected decision, however. In the meantime, should Osaka win the bid, it would see the massive project sprawl on Yumeshima island.

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