Kishida says he will approve Osaka as site of Japan's first casino -report (updated)

Orix

14/04/2023 24:47

(Adds details, background throughout)
    By Kantaro  Komiya
       TOKYO, April 14 (Reuters) - Japan will approve a plan to
build the country's first casino in the western city of Osaka,
Jiji news agency cited Prime Minister Fumio Kishida as saying on
Friday, paving the way for a resort aimed at attracting tourist
dollars.
    Put forth by the city and Osaka prefecture, the project aims
to open a casino, conference centre and other facilities in 2029
with 1.8 trillion yen ($13.5 billion) of initial investment.
    Casinos were previously illegal in Japan along with other
private gambling, but a 2018 integrated resort (IR) law provided
exception to casino games such as poker or baccarat at
officially-approved establishments as part of an effort to
attract tourists.
    U.S. casino operator MGM Resorts International  MGM.N  and
local partner Orix Corp  8591.T  have spearheaded the Osaka IR
project, with each owning a 40% stake in the company set up to
manage the complex.
    Another 20 companies including Osaka-based Panasonic
 6752.T , Kansai Electric Power  9503.T  and West Japan Railway
 9021.T  hold the remaining 20% stake, according to a local
government document.
    MUFG Bank  8306.T  and Sumitomo Mitsui Banking Corp will
provide 550 billion yen in project financing for the resort, the
document showed.
    The 492,000-square-metre resort complex is located on
Yumeshima, a reclaimed island in Osaka Bay, and will also
include a hotel, shopping mall and ferry terminal. Japan will
host the World Expo on the island in 2025.
    The government's decision came after the pro-casino Japan
Innovation Party retained both the office of prefectural
governor and city mayor in Osaka on Sunday. 

 (Reporting by Kantaro Komiya; Editing by Chang-Ran Kim and
Jamie Freed)
 ((ran.kim@thomsonreuters.com; +81-3-4520-1228))