The budget for the following fiscal year is all set by Osaka’s prefectural and city authorities. The officials agreed to distribute JPY600 million, or US$4.5 million. They are planning to spend that part of the budget on pursuing an integrated resort that contains a casino as well, and it will be allocated to the integrated resort promotion bureau in Osaka.
The plans for casino resorts:
It is confirmed that the budget for the 2023 fiscal year is decreased by 6.4 percent compared to the last year.
On the other hand, the amount which will be spent to implement some “political measures” is JPY115 million. Other expenses are mostly personnel costs.
The Osaka prefecture announced the information on Wednesday when the draft budget for the following fiscal year is completed and shared with the audience.
The prefectural and city authorities are currently in charge of the tilt at a casino resort in this regulated market, so they will split the costs of the operations needed to bring the integrated casino resort to the light of the day.
In April last year, the city applied for the integrated resort to the national government, but the answer is still missing. It isn’t the only city that awaits the response – Nagasaki also pledged for that, but this market didn’t get a response as well.
Hoping for a fast response:
Osaka recently signed a deal with MGM Resorts International, a famous casino operator, and Orix Corp from Japan. The companies partnered up to build a casino resort in Osaka, for which they will need an initial investment of JPY1.08 trillion (US$8.02 billion).
According to the plans, the resort complex will be opened in 2029. Bill Hornbuckle, the Chief Executive at MGM Resorts, said that the deadline is “challenging” – and it will be even more challenging if the authorities delay their answer.
Hornbuckle said: “We had hoped to hear in October. Obviously, we sit here now in February, not having heard. The process lies today with MLIT [the Ministry of Land, Infrastructure, Transport, and Tourism], the government agency that is going through and consistently asking us questions about the project, about the contract with the government of Osaka, etc.”
The Ministry of Land, Infrastructure, Transport and Tourism in Japan will consider these applications, both from Osaka and Nagasaki. Nagasaki adjusted its budget for the following fiscal year, setting aside about JPY1.52 billion for the planned casino resort.
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