The initial investment required to develop an integrated resort in Osaka is expected to increase by around US$1.3 billion as a result of soaring prices for construction materials, officials announced Tuesday.
The amendment to Osaka’s area development plan has also revised the opening date of the IR – to be developed by consortium led by MGM Resorts and its local partner ORIX – by a year from autumn 2029 to autumn 2030, according to The Japan Times.
The delay, authorities noted, was due to the central government initially taking a year to approve the Osaka-MGM proposal. Another proposal by Nagasaki and its preferred partner Casinos Austria remains in limbo with the central government allegedly seeking more information around funding.
While MGM Resorts has touted a near US$10 billion investment to build its Osaka IR, Osaka officials said Tuesday that the initial investment required has originally been estimated at JPY 1.08 trillion (US$7.31 billion) but this had now increased to JPY 1.27 trillion (US$8.60 billion).
The revised plan has been forwarded to the central government for approval before Osaka and the MGM-ORIX consortium can finally sign a long-awaited implementation agreement.