Japan legalized casino resorts in 2018, and only one project has made it through national approval: an integrated resort (IR) on Yumeshima, an artificial island in Osaka Bay. Led by MGM Resorts International and Japanese financial group ORIX, it is one of the largest single private investments in Japan’s tourism history, and it is scheduled to open around 2030.
Japan’s First and Only Approved IR
The 2018 IR Implementation Act allows up to three integrated resorts nationwide, each combining a casino with hotels, convention space and entertainment. Several regions competed for the licenses, but most dropped out:
- Osaka — approved by the national government in April 2023.
- Nagasaki — a plan near the Huis Ten Bosch theme park was not approved in late 2023, largely over doubts about its financing.
- Wakayama — the prefectural assembly rejected its plan in 2022.
- Yokohama — withdrew in 2021 after a mayoral election won on an anti-casino platform.
Osaka is therefore the test case for whether Japan’s tightly regulated casino model can work commercially.
Who Is Building It
The operator is Osaka IR Co., a joint venture in which MGM Resorts and ORIX each hold about 40%. The remaining shares are spread across roughly 20 Japanese companies, including Kansai Electric Power, Panasonic and major railway groups. The initial investment was set at about ¥1.08 trillion and was later revised upward to around ¥1.27 trillion, roughly $9 billion, because of rising construction costs. Funding comes from a mix of equity and a large project-finance loan from Japanese banks.
| Item | Plan |
|---|---|
| Site | About 49 hectares on Yumeshima, leased from Osaka City |
| Investment | Around ¥1.27 trillion (about $9 billion) |
| Hotels | Three hotels with about 2,500 rooms in total |
| MICE | International conference center for up to 6,000 people and about 20,000 m² of exhibition space |
| Expected visitors | About 20 million per year, roughly 70% domestic |
| Expected revenue | About ¥520 billion per year, of which roughly 80% from gaming |
| Opening | Targeted for autumn 2030 |
The Rules That Shape the Business
Japan designed its IR framework to be stricter than Macau’s or Singapore’s in several respects:
- Casino floor limit — gaming areas may take up no more than 3% of the resort’s total floor area.
- Entry fee for residents — Japanese residents pay ¥6,000 per 24-hour visit and must show their My Number identification card. Foreign tourists enter free.
- Visit caps — residents may enter no more than three times a week and ten times in any 28-day period.
- Gaming tax — 30% of gross gaming revenue goes to the national and local governments, split equally.
Osaka Prefecture and Osaka City expect about ¥106 billion a year from the gaming levy and entry fees. They plan to use the money for tourism, local services and gambling addiction measures.
Risks and Controversies
Land and construction costs
Yumeshima was built from landfill, and soil studies found liquefaction risk and contaminated ground. Osaka City agreed to pay about ¥79 billion for ground improvement, which critics call a public subsidy for a private casino. Construction began in 2025 after the operator gave up its right to cancel the project without penalty.
Gambling addiction and public opinion
Japan already has a large pachinko industry, and public concern about gambling addiction remains high. Polls have shown divided opinion in Osaka, and citizen groups have filed lawsuits over the land lease terms.
Demand assumptions
The business case assumes that most visitors will be Japanese, despite the entry fee and visit caps. If domestic demand disappoints, the resort will depend more heavily on Asian tourists and on high-spending VIP players, a market where Macau and Singapore are well established.
Kansai’s Bigger Bet
The IR is part of a wider plan to redevelop Osaka Bay. Yumeshima hosted Expo 2025, and the Osaka Metro Chuo Line was extended to the island in January 2025. Kansai International Airport has been expanding its international terminal, and regional rail groups such as Hankyu Hanshin and Kintetsu are investing in new lines and urban projects. Supporters see the IR as an anchor that keeps visitors in the region after the Expo.
What It Means for Overseas Partners
- Suppliers — gaming equipment makers, hotel operators, entertainment producers and food and beverage brands will compete for contracts in the run-up to the 2030 opening.
- Event organizers — a 6,000-seat conference center gives Kansai a large MICE venue, and international trade shows will be targeted from the start.
- Investors — hospitality, retail and transport assets around Osaka Bay are likely to benefit if visitor targets are met.
- Policy watchers — the results in Osaka will decide whether Japan reopens the process for the two remaining IR licenses.
Conclusion
MGM and ORIX are betting that a strictly regulated, convention-led resort can succeed in a country that has kept casinos out for decades. The project now has approval, financing and construction under way. Visitor numbers after 2030 will show whether Japan’s model of casino tourism works.
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