The artificial Yumeshima Island in Osaka Bay has been chosen as the site for Japan’s first integrated casino and the Asian country is already on the verge of construction.
In April 2023, Japanese authorities threw their full support towards the construction of the casino which will be part of a giant resort complex (5.3 million-square-foot) consisting of other facilities like a conference center, hotels, a museum, a shopping mall, ferry terminal, and a nearby helicopter pad. Now, the big question is, how the launch of this highly anticipated casino resort will influence the global casino industry.
The Osaka Project
Preparations are already underway for Osaka IR KK to start work at the site for the giant resort complex that will house the country’s first integrated casino. Many rumors have been spread about the humongous project but as experts from online-casinos.com have stated, the integrated casino venture will be spearheaded by MGM Resorts International (U.S. casino operator) and Orix Corp (a local partner), each holding a 40% stake in the firm charged with the responsibility of managing the upcoming complex
The remaining 20% stake in the project is held by local firms including West Japan Rail, Osaka-based Panasonic, and Kansai Electric Power. A local government document revealed that 550 billion yen is expected to come from MUFG Bank and Sumitomo Mitsui Banking Corp as project financing targeted at the construction of the resort
Possible Impact of the Casino Resort on the Casino Industry
Japan is regarded as one of the biggest untapped casino markets in the Asian continent, thus, expectations are quite high. Stakeholders in the gambling landscape have predicted that the launch of Japan’s first integrated casino is going to have a huge impact on the global casino landscape.
For one, Japan boasts an affluent population of approximately 126 million and is dubbed the 3rd largest economy in the world. If well harnessed, this populace will boost the number of casino enthusiasts on a global level. This is not to say that the Japanese have not been indulging in gambling activities all these years, however, the few that take to betting can only leverage offshore online casinos which is a limiting factor to others who don’t have access to such facilities.
Besides, if Japan brings in a healthy portion of its 126 million population into the gambling industry, it goes without saying that global revenue generation will skyrocket. While the big rollers will keep the massive funds rolling in, the newbies and careful gamers who are usually the majority will form a huge pool of funds.
In addition, Japan sits in close proximity to some of Asia’s wealthiest gamblers, especially high rollers from Macau China which is why it is regarded as a prized marketplace for the gambling business.
Apart from having a huge part of Japan’s population involved in gambling, the resort is poised to boost tourism to the Asian country. According to prevailing reports, the Osaka resort is expected to receive around 20 million visitors every year and 6 million out of the 20 will be tourists from other parts of the world.
Predictions for annual sales at the casino resort are pegged at ¥520 billion and out of this ¥520 billion, ¥420 billion is expected to accrue from gambling revenue. With that said, the integrated resort will not only bring economic benefits to its host region, it will impact the entire Japan and the global gambling landscape as a whole.
Yumeshima where the casino resort is located is expected to be the host of the upcoming 2025 World Expo which will not only boost business for the region but will also create awareness about Japan’s first gambling facility. This may result in a larger influx of tourists and gaming enthusiasts in the future. When completed, this gambling hub may give Vegas a run for its money, and bettors who are jaded with the bright light of Las Vegas may find a breath of fresh air in Yumeshima.
Talking about the local Japanese economy, the Yumeshima casino project is poised to improve it with massive job creation for thousands of people. It is also expected to reduce the number of unemployed people in the country.
Expected Challenges from Japan’s First Casino Resort
The plans to build Japan’s first casino resort are not without challenges as the people have expressed concern about the possible rise of criminal activities. According to their submission, the launching of the Yumeshima project may lead people into gambling addiction which results in crimes.
However, the government has assured them of the strict rules that will be put in place to help curtail the problems. Osaka Gov. Hirofumi Yoshimura revealed that the requirements for entry will include passports and My Number (identification) cards. The entrance charge is going to be ¥6,000 (payable by both locals and foreign residents but not foreign visitors) which will not be easily affordable. Besides, family requests will be taken seriously and can bar some individuals from entry.
Wrapping Up
The launching of the first casino resort in Japan is expected to impact the gambling industry significantly. Being a lucrative and untapped market, the project will not only enhance revenue generation in the country but will boost the global collection from casino businesses. It is also expected to reduce the unemployment rate in the country, and boost tourism, and the influx of other businesses to the region.
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