The prefecture launched its request for proposals to find an integrated resort operator in December 2019, with the aim of boosting Osaka’s economy, particularly in light of the Covid-19 pandemic.
The MGM-Orix bid, which scored 788.5 points out of 1,000, was highly ambitious and aimed to leverage Osaka and Kansai’s tourism attractions, industrial resources, and cultural resources to drive economic growth.
The bid was evaluated based on five key areas:
- Financial strength and implementation for business stability (scored 254.5 out of 300)
- Quality and uniqueness of concept (scored 204 out of 260)
- Creation of high-quality and unique international tourism bases (scored 152.5 out of 200)
- Implementation of countermeasures to prevent gambling-related harm (scored 101.5 out of 140)
- Building a foundation for an attractive and sustainable integrated resort that contributes to the community (scored 76 out of 100)
The Osaka prefecture expressed high expectations for the potential growth of the Osaka/Kansai economy, the tourism industry, and the overall promotion of tourism and economic development in Japan as a whole.
MGM and Orix proposed an initial investment of JPY1.8 trillion, with anticipated annual sales of JPY540 billion and a visitor count of 20.5 million per year. The resort is expected to employ 15,000 people.
In other regions of Japan, Clairvest was selected as the IR developer for Wakayama in June, while Nagasaki chose Casinos Austria International in August. However, controversies arose in both instances.
Anonymous documents circulated in Wakayama, alleging unsuitability of William Weidner, president of Gaming Asset Management, due to his conduct during his time as president of Las Vegas Sands.
In Nagasaki, Oshidori International Development withdrew from the bidding process, citing dissatisfaction with the development and operation rules imposed by the prefecture and suspicions of ethical fraud in the request for proposals process.
