Photo/Illutration A casino-centered integrated resort is planned on the artificial Yumeshima island in Osaka’s Konohana Ward. (Asahi Shimbun file photo)

OSAKA--The Osaka prefectural government on Sept. 28 started the dice rolling on opening the nation's first casino-centered integrated resort (IR) here, signing an agreement with a resort operator. 

The prefectural and city governments signed a fixed-term business-use land lease agreement and site agreement with the operator, Osaka IR KK, on the day.

Osaka IR is mainly funded by Orix Corp. and MGM Resorts Japan LLC.

The IR is scheduled to open on Yumeshima island in Osaka Bay around autumn 2030, following the 2025 Osaka Kansai Expo.

The governments also inked an implementation agreement with the operator that outlines the process toward opening.

Work to prevent soil liquefaction on the artificial island is scheduled to begin as early as October.

Preparatory work such as water and electricity infrastructure installation will commerce around summer 2024 and construction of the IR facilities will start around spring 2025, which is expected to be completed by summer 2030, according to the agreements.

The operator will apply for a casino license from the central government before the opening.

The opening has been postponed from around autumn-winter 2029 because the central government approved the IR development plan in April, about six months later than the local governments expected.

The operator’s initial investment rose to about 1.27 trillion yen ($8.5 billion), up from the initial estimate of around 1.08 trillion due to surging material prices.

The increase will be financed by Orix and MGM Resorts Japan.

The IR will include an international conference hall, restaurants, hotels and a theater.

The core of the resort is a casino facility. Gambling is banned by the Criminal Law in Japan, however, it will be allowed as an exception in the facility.

The resort is projected to ring up sales of around 520 billion yen annually, 80 percent of which will come from the gambling operation.

But concerns have been raised that the opening of the nation’s first casino facility will result in a surge of gambling addicts. 

In addition, public expenses could rise under certain conditions such as soil remediation costs in the event of expansion construction following the IR opening.

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