MGM Resorts hopes to know the fate of Japan by October

MGM Resorts International CEO and President Bill Hornbuckle said he hoped to know if the company had been successful in winning an integrated resort license in Japan by October this year.

MGM and local partner ORIX are seeking to develop a nearly $10 billion IR in Osaka, which was one of two sites alongside Nagasaki to submit final development plans to the government last week. A third site, Wakayama, withdrew its bid at the last minute due to funding issues.

Speaking to analysts during the company’s 1Q22 earnings call on Tuesday morning (Asian time), Hornbuckle said he hoped a decision would be made sometime this year to begin work. of development by the end of 2023.

“Last week, we submitted our regional development plan to the Japanese government alongside our partners from ORIX and the city of Osaka,” he said.

“This is the final step before licensing decisions are made hopefully in October this year. We continue to work closely with the national government to secure a license which hopefully will will be granted later this year to introduce a fully integrated resort in Japan.

Asked for more details on the development schedule, Hornbuckle said: “To think that we had a crack in this large-scale market and [are now] one of the longtime survivors [means] it will be compelling enough for all of us.

“Having said that, I’m hoping to build pylons by the end of 2023, early 2024. Given the scale, this is a four and a half year project to build, so [we would be looking to open in] end of 2028, in 2029. That’s really the way to think about it.

According to details previously released by Osaka City and Prefecture, Osaka IR is expected to attract 20 million visitors a year with sales of 520 billion yen ($4.1 billion) and ripple effects annual economic savings of 1.14 trillion yen ($9.0 billion).

Other consortium members include Kansai Electric Power, Panasonic, Kintetsu Group Holdings and NTT West. Other investors include Obayashi, Takenaka Corporation, Taisei Corporation, Osaka Gas, JR West and JTB.