Concept image of the integrated resort. (Courtesy of Osaka IR KK)
Osaka Prefecture and Osaka City are moving forward with plans to establish an integrated resort (IR) featuring a casino on Yumeshima, an artificial island in Osaka's Konohana Ward.
On September 10, it was officially announced that Osaka IR KK, the project operator, has waived its right to withdraw from the project without penalties. With initial construction set to begin by the end of September, the resort is now expected to open in the fall of 2030.
Background
By waiving its right to exit, Osaka IR aimed to demonstrate its strong commitment to advancing the project. Initially, the agreement between Osaka Prefecture, Osaka City, and the operator included a provision allowing the company to terminate the project without penalties if it faced significant obstacles, such as a major drop in tourism demand. This right was to remain valid until September 2026.
During the summer, the Bureau of International Expositions (BIE) and the Japan Association for the 2025 World Exposition requested a pause in IR construction during the Expo. This is because the Expo's venue is adjacent to the resort site. The request raised concerns about delays and sparked speculation that Osaka IR might exercise its right to terminate.
Government Mediation
In response, the government stepped in to mediate negotiations, including adjustments to construction methods. Dimitri Kerkentzes, Secretary General of the BIE, visited Japan in late August. He expressed optimism about the project, stating, "I hope the issues will be resolved by the end of September." Efforts to resolve the matter appear to be moving forward.
Osaka IR is co-funded by Japan's Orix Corporation and MGM Resorts International based in the United States. Each holds a 40% stake. Additionally, 22 major companies, mostly from the Kansai region, are involved as minority shareholders. The total initial investment is projected to be around ¥1.27 trillion (roughly $8.87 billion USD).
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(Read the article in Japanese.)
Author: Nobuo Kurokawa, The Sankei Shimbun
