Photo/Illutration An artist's conception of the completed integrated resort for Osaka (Provided by MGM Resorts)

The odds now overwhelmingly favor the plan of the Osaka city and the prefectural governments to open what would be Japan's first casino resort in 2029, with the final approval likely to be granted soon. 

The tourism ministry will make an official decision based on opinions collected at an April 14 meeting of the integrated resort (IR) promotion headquarters, led by Prime Minister Fumio Kishida.

“We will do our best to move forward with thorough preparations,” Osaka Mayor Hideyuki Yokoyama said on April 12 in response to news that the plan is likely to be approved.

The city and prefectural governments aim to open the IR on the artificial island of Yumeshima in Osaka Bay.

It would include casino facilities and international conference centers. The integrated resort is expected to attract around 20 million visitors annually.

The initial investment will be around 1.08 trillion yen ($8.1 billion).

The plan was the main campaign issue in the April 9 double elections for Osaka governor and Osaka mayor, during which the economic ripple effect and measures against gambling addictions were discussed.

Regional political party Osaka Ishin no Kai, which is pushing the IR bid, won both elections.

Yokoyama indicated he would hold discussions with IR operators for the opening.

Osaka Ishin pledged to host and promote the IR in the 2011 double elections.

Ichiro Matsui, who later became the head of Osaka Ishin, personally knows Yoshihide Suga, who served as chief Cabinet secretary under the administration of former Prime Minister Shinzo Abe. That led to related legislation later being promoted.

In the April 9 elections, major candidates other than those from Osaka Ishin opposed the IR bid, but Osaka Ishin won in a landslide.

Therefore, Osaka political circles strongly believe the central government will approve the plans in response to the election results.

However, challenges remain.

The Osaka city and prefectural governments plan to implement measures against gambling addiction, such as limiting the number of visits per person.

However, a member of citizens’ group No! Osaka IR and Casino said, “The local governments’ burden for supporting addicted patients will only increase. If the IR isn’t built at all, then people won’t develop a gambling addiction in the first place.”

There are also concerns about the financial burden on the city and prefectural governments.

Initially, the local governments said the IR would be privately funded and operated.

But when concerns about soil liquefaction occurring on the artificial island were raised, they decided to spend 78.8 billion yen to help prevent it. The burden of public expenses could further increase.

NAGASAKI IR PLAN STALLED

Nagasaki Prefecture also submitted a plan to host an IR, but the central government is likely to postpone any decision on it and continue assessing the plan.

“We have not received any information from the central government,” Nagasaki Governor Kengo Oishi said on April 12. “However, we as a prefecture will continue to work toward hosting (an integrated resort).”

The prefecture would like to host a casino resort within the grounds of the Huis Ten Bosch theme park in Sasebo, which it aims to open in 2027.

The initial investment, including construction, will be 438.3 billion yen, according to the plans.

However, only a fraction of the companies that will provide funding or loans, as well as how much they will provide, have been disclosed.

Last month, it was revealed that Swiss financial giant Credit Suisse, which was involved in financing the resort, fell into a management crisis and will be acquired.

“Fund-raising issues are still affecting the IR bid,” said a Nagasaki prefectural assembly member elected from Sasebo.

Three rookies planning to run in the Sasebo mayoral election, with campaigning kicking off on April 16, all support the IR bid.

(This article was compiled from reports by Shinji Hakotani, Kazuhito Suwa, Itsuki Soeda, Takateru Doi and Tetsuya Ishikura.)

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