MGM Osaka to redefine Japan’s tourism and entertainment

In April 2025, Japan ushered in a new era for its tourism and entertainment industries by breaking ground on the MGM Osaka Integrated Resort (IR) project. 

Located on Yumeshima Island in Osaka, near the site of the Grand Ring—the world’s largest wooden architecture and the venue of EXPO 2025 OSAKA, KANSAI, JAPAN—this marks a significant milestone for the nation.

MGM Osaka is the first casino resort to receive official approval under Japan’s 2018 IR law, which permits the development of up to three integrated resorts nationwide. As of now, it remains the only officially approved project.

This initiative represents a major step forward in promoting Japan’s tourism industry, particularly in the Kansai region, and signifies the country’s first foray into the legal casino market.

Interestingly, Japan spent over 20 years studying and preparing various aspects of the integrated resort concept before MGM Osaka received its official approval in 2023. Construction officially began in April 2025.

Overview of the 1.27-Trillion-Yen Mega Project

MGM Osaka is a joint venture between MGM Resorts International from the United States and Japan’s Orix Corporation, each holding a 42.5% stake. The remaining 15% is held by local partners such as Panasonic, Kansai Electric Power, and West Japan Railway.

The project involves a total investment of approximately ¥1.27 trillion (about US$8.9 billion or THB311.5 billion), spanning a large area on the man-made Yumeshima Island in Osaka Bay. It is scheduled to open in the fall of 2030.

Planned facilities include a casino, three hotels (with a combined total of around 2,500 rooms), a large convention centre, exhibition halls, a theatre, restaurants, and retail spaces. The resort is expected to attract a significant number of international tourists and generate annual gaming revenue of approximately US$5.9 billion, with an EBITDA exceeding US$2 billion.

Economic Aspects

The MGM Osaka project holds significant potential to stimulate the Kansai region’s economy, notably through the creation of tens of thousands of direct and indirect jobs. It is also expected to boost inbound tourism to Japan in the post-Covid-19 era, particularly attracting visitors from China and Southeast Asia.

From an infrastructure standpoint, the project is accelerating the development of Osaka’s transportation system. This includes the opening of a new subway station in January 2025 and the extension of the Kintetsu Nara Line to connect with Yumeshima Island.

Challenges and Criticisms

Despite its economic potential, MGM Osaka faces a number of challenges, especially public concerns over issues such as gambling addiction, money laundering, and social impact.

Although construction is now underway, opposition remains. One citizen group has even filed a lawsuit against the Osaka government, arguing that the city will bear high social costs, including gambling-related harm and increased law enforcement and judicial expenses. To address this, Japan plans to charge a casino entry fee for Japanese nationals and limit their visits to a maximum of three times per week.

Another challenge is the project's location on a man-made island, which lies in a natural disaster-prone zone, susceptible to earthquakes and typhoons. This raises serious engineering and safety concerns, especially given that the area will also host Expo 2025 and large future crowds.

In addition, there are questions regarding the long-term sustainability of the resort’s revenue. If other IR projects are approved in Japan or neighbouring regions, it could lead to heightened competition.

The Japanese government’s decision to legalise integrated resorts represents a major policy shift, highlighting efforts to diversify national income sources—moving away from a heavy reliance on manufacturing and exports, toward developing world-class hospitality and entertainment sectors.

More Than Just a Casino Resort

MGM Osaka is more than a casino resort. It serves as a pilot project for a new model of urban and economic development in Japan—one that blends luxury, technology, and international investment appeal.

More importantly, MGM Osaka could become a turning point for Japan’s tourism industry, with the potential to elevate Osaka as a leading IR hub in East Asia. Despite the multifaceted risks, with careful management and stringent regulatory oversight, the project may serve as a global benchmark for integrated resort development—and a catalyst for reshaping Japan’s economic landscape in the 21st century.

Key Information about the Project

The MGM Osaka Integrated Resort (IR)—Japan’s first casino resort—officially began construction on April 24, 2025, on Yumeshima Island, an artificial island in Osaka Bay.

Total Investment: Approximately ¥1.27 trillion (US$8.9 billion)

Scheduled Opening: Fall 2030

Main Investors: MGM Resorts International and Orix Corporation, each holding a 42.5% stake. The remaining 15% is held by local partners such as Panasonic, Kansai Electric, and West Japan Railway.

Planned Facilities: A casino, three hotels with a total of approximately 2,500 rooms, a 400,000-square-foot convention centre, a 330,000-square-foot exhibition space, a 3,500-seat theatre, restaurants, and retail shops.

Projected Revenue: Estimated annual gaming revenue of US$5.9 billion and EBITDA exceeding US$2 billion.

Latest Developments

MGM’s Capital Increase: MGM Resorts International has increased its investment to around US$3 billion, accommodating rising costs following contractor negotiations, while remaining confident in achieving high returns on investment. (Source: CasinoReviews.Net)

Construction and Expo 2025 Coordination: Since Yumeshima Island is the venue for Expo 2025, construction activities will be scaled back during periods of high visitor traffic. Use of heavy machinery is scheduled to resume after the Expo concludes in October 2025.

Infrastructure Improvements: A new subway station opened in January 2025 to facilitate access to Expo 2025 and, in the future, MGM Osaka. The Kintetsu Nara Line is also being extended to improve connectivity to the island.

In-Depth Timeline: The Development of Japan’s IR Concept

Before the 2000s: A Concept in the Shadows

The idea of legalising casinos in Japan remained a sensitive issue due to the country's strict stance on gambling.

While certain forms of gambling, like pachinko and lotteries, were allowed under special exemptions, casinos were strictly prohibited.

2002: First Official Policy Study

A group of bipartisan lawmakers formed the Pro-IR Diet Caucus, advocating for integrated resorts.

They commissioned studies based on international examples, such as Singapore, Las Vegas, and Macau, to explore the economic potential and regulatory frameworks.

2010–2015: Business and Local Government Momentum

Major cities like Osaka and Yokohama began showing strong interest, viewing IR development as a strategy to attract investment and boost tourism.

Private companies, including Orix and Panasonic, joined in lobbying local governments to support the initiative.

December 2016: IR Promotion Law Passed

Under Prime Minister Shinzo Abe, the government passed the IR Promotion Law, presenting it as a tool for economic revitalization.

The law allowed for the legal establishment of up to three integrated casino resorts in Japan.

July 2018: IR Implementation Law Passed

This follow-up legislation detailed key regulatory frameworks, including:

A cap on casino visits for Japanese nationals (maximum 3 times per week)

The creation of an independent Casino Regulatory Commission

A taxation system on casino revenues

This marked the beginning of a formal proposal process from municipalities nationwide.

2019–2020: Host City Selection

Over five cities expressed interest, including Osaka, Yokohama, Nagasaki, and Wakayama.

Osaka emerged as the frontrunner due to its robust infrastructure and the availability of Yumeshima Island for development.

April 2022–2023: Osaka Submits IR Plan to National Government

Osaka officially proposed MGM Resorts and Orix as project developers.

In April 2023, Osaka’s IR plan became the first to receive government approval.

April 2025: Construction of MGM Osaka Begins

After years of preparation involving environmental reviews, engineering assessments, and financial structuring, construction officially commenced.

Slow and Steady: Japan’s “Incrementalism” Approach

Japan adopted a gradualist, highly cautious approach to IR development, especially given the societal sensitivity around gambling.

The government emphasized studying international cases, implementing layered regulatory controls, and striking a balance between economic opportunity and social risk.

Summary

Policy study and legal groundwork period: Nearly 20 years

Time from major law passage to construction start: Around 9 years (2016–2025)

This project represents the outcome of a long-term strategic process, combining political negotiation, economic planning, and deep public engagement—a reflection of how Japan navigates complex social issues through deliberate policymaking.