The city of Osaka has selected a group led by MGM Resorts and Orix, a financial firm, as the sole contender to construct a combined resort in the prefecture.
The prefecture issued a call for proposals in December 2019 to identify a suitable operator for the integrated resort, but only one proposal was submitted. Nevertheless, the prefectural government highlighted the ambitious nature of the proposal and its potential to significantly contribute to Osaka’s economic recovery from the repercussions of the novel coronavirus pandemic.
“By thoroughly comprehending the project’s purpose and goals, focusing on post-pandemic recovery, and establishing a growth-oriented integrated resort that leverages Osaka and Kansai’s tourist attractions, industries, and cultural assets, it will serve as a catalyst for economic growth in Osaka and Kansai,” the government stated.
“This is a highly ambitious proposal that will elevate the city’s brand to a new level of international competitiveness.”
MGM-Orix’s proposal was evaluated across five categories, achieving a total score of 788.5 out of a possible 1,000. The most critical aspect was the company’s financial strength and the bid’s ability to ensure business stability. In this area, the proposal received 254.5 out of a possible 300 points.
The venture garnered 204 out of 260 points for its conceptual excellence and “distinctiveness.” It secured 152.5 out of 200 points for its potential to establish a high-quality and unique global tourist destination.
The endeavor also earned points for its execution of measures to address concerns such as gambling-related damages. In this area, the project attained 101.5 out of 140 points.
Finally, the venture scored 76 out of 100 points for establishing the groundwork for an appealing and sustainable integrated resort that contributes to the community.
Osaka Prefecture added: “There are high hopes that the Osaka Integrated Resort will contribute to the growth of the Osaka/Kansai economy and the enhancement of tourism, as well as the introduction of tourism and economic advancement throughout Japan.”
In their proposal documents, MGM and Orix indicated that the initial investment for the venture would be 1.8 trillion yen (approximately £11.84 billion / €13.85 billion / $16.17 billion). The consortium stated that annual sales are anticipated to be around 540 billion yen, with 4.3 billion yen stemming from gambling, and Osaka Prefecture would receive 77 billion yen annually.
The bidders anticipate roughly 20.5 million visitors per year. They indicated that they expect about 6.5 million visitors from overseas, with the remainder coming from Japan.
The resort is projected to employ 15,000 individuals.
Across various regions of Japan, Wakayama chose Clairvest in June to develop its integrated resort, while Nagasaki selected Austrian Casinos International to manage its integrated resort in August.
Nonetheless, both proposals were not without dispute. In Wakayama, anonymous materials were circulated accusing Clairvest’s consulting firm, Game Assets Management, president William Weidner of being unsuitable to participate in the bidding process due to his actions while leading Las Vegas Sands.
These materials were sent to the Japan Casino Regulatory Commission, Wakayama Prefecture Government, Clairvest, and its Wakayama subsidiary, Clairvest Nim Risk Investment. However, ICE365 confirmed that three of the recipients did not receive the materials, nor did they receive a reply from the JCRC.
Weidner labeled the documents “carefully planned but unfounded slander” that did not contain “anything that constitutes criminal activity.”
Meanwhile, in Nagasaki, one of the three shortlisted bidders, Oshidori International Development, declared that it had withdrawn from the bidding process days before the prefecture announced the victor.
Oshidori stated that it did not agree with the county’s development and operating regulations and that the bidding process was not conducted in an ethical or fair manner.
The company also stated in a declaration that it had “encountered numerous instances of alleged ethical deception during the bidding process.”
They determined they could only participate in a selection procedure that was transparent and conducted by experts.
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