Japan has entered a new chapter in its tourism and entertainment industry with the formal launch of construction on its first legal casino resort, set to transform Yumeshima Island in Osaka Bay. The project broke ground this week, signaling a long-awaited milestone nearly two decades in the making.

The ¥1.27 trillion (approximately US$8.9 billion) development, spearheaded by MGM Resorts International and Orix Corporation, will anchor a sweeping 49-hectare integrated resort (IR). The location lies adjacent to the EXPO 2025 site, adding to its strategic prominence.

A Vision Years in the Making

During a ceremonial event held on the artificial island, top executives, including MGM Japan CEO Ed Bowers and government leaders, gathered to celebrate the beginning of construction, according to Uchi. “I’ve been working on this for more than 15 years, and no one is more happy than I am to see this happen,” Bowers said. “It’s not been an easy road and we will continue to see challenges until and after this opens.”

The project has been in development since Japan passed the IR Promotion Act in 2016, but discussions around casino legalization go back even further. Former MGM CEO Jim Murren was one of the earliest proponents, identifying Osaka as an ideal location as far back as 2014. Despite initial interest from several major global operators, including Las Vegas Sands and Caesars Entertainment, most firms eventually withdrew due to Japan’s protracted and uncertain regulatory process.

Ultimately, Osaka stood alone in receiving government approval for development, following the rejection of Nagasaki’s proposal over financing and operational concerns.

Resort Features and Timeline

Expected to open by fall 2030, MGM Osaka will feature an expansive array of amenities: approximately 2,500 hotel rooms spanning brands such as MGM Osaka, MGM Villas, and MUSUBI Hotel; a 3,500-seat theater; over 400,000 square feet of convention and exhibition space; and a variety of entertainment, dining, and retail offerings. The site will also host a spa, fitness center, public park, and a dedicated tourism promotion hub.

Although gaming will be a key element of the resort, Japan’s casino laws limit gambling space to just 3% of total indoor floor area. Nevertheless, projections indicate around 2,000 slot machines and 200 table games will be installed. MGM forecasts an annual gross gaming revenue of approximately US$6 billion, aiming to rival the likes of Galaxy Macau, which leads Asia with casino earnings near US$4.5 billion.

Balancing Growth with Community Concerns

To mitigate disruptions during the busy EXPO 2025, local authorities and developers have agreed to pause major construction efforts, such as pile driving, until after the event concludes in October 2025. Additionally, activity at the site will be scaled back during anticipated peaks in visitor traffic.

In response to public concerns over potential criminal influence, the developers established the “Osaka IR Construction Organised Crime Group Elimination Council” in late 2024. This initiative seeks to shield the project from organized crime and maintain strict compliance standards.

The integrated resort aims to draw approximately 20 million annual visitors—6 million from overseas and 14 million from within Japan. Officials anticipate yearly revenue of ¥520 billion (about US$3.6 billion). Under a 35-year lease agreement with Osaka City, the land will be rented at ¥428 per square meter per month.

Future Outlook and Economic Significance

As Osaka looks ahead to EXPO 2025 and beyond, the integrated resort is poised to become a major economic engine for the Kansai region. Leaders from both the city and prefecture are already contemplating future redevelopment of the neighboring 50-hectare Expo site, with potential proposals including new event facilities, hotels, and even a racetrack.

MGM Osaka is currently set to enjoy a monopoly in Japan’s legal casino space. However, speculation persists that the central government may initiate a new bidding round for additional IR licenses as early as 2026.

In the words of a press release from MGM’s developers, “The Osaka IR is scheduled to open in the fall of 2030, and in co-operation with Osaka prefecture and Osaka City, will contribute to the development of Japan’s tourism industry and the growth of the Kansai region through the first-of-its-kind project in Japan.”