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The project was proposed years ago, but it was delayed due to the Covid-19 pandemic and a corruption scandal involving a ruling-party lawmaker who was accused of accepting bribes while in charge of casino policy. In addition to hotels, a conference centre, a shopping centre, a museum and a ferry port, the huge resort complex on Yumeshima will also feature a helicopter pad nearby for high rollers.

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Casinos and other forms of private gambling were previously prohibited in Japan, but an integrated resort (IR) law passed in 2018 made an exception for casino games like poker or baccarat played in places the government had authorised to draw tourists. Japan's 126 million wealthy residents and proximity to Asia's wealthy gamblers make it a valued market for casino owners, even though surveys revealed that many are concerned about addiction and violence.

The Osaka IR project has been led by American casino operator MGM Resorts International and local partner Orix Corp, with each owning a 40% stake in the business established to build and run the complex. A local government document stated that MUFG Bank and Sumitomo Mitsui Banking Corp would provide JPY¥550bn in project financing for the resort, with another 20 entities holding the remaining 20%.

The initiative, according to Prime Minister Fumio Kishida, will help the Kansai region around Osaka and larger Japan's economy flourish after the World Expo 2025 event as the nation strives for a post-pandemic recovery in tourist spending. According to the project document, the resort expects to generate JPY¥520bn in revenue annually, primarily from the gambling industry and anticipates drawing six million foreign tourists and 14 million domestic visitors.

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MGM Resorts, Orix, and the city and prefecture of Osaka expressed their appreciation for the decision and their intent to collaborate on the project's development. TOKYO, April 14 (Reuters) - (This April 13 story has been corrected to fix initial investment amount to 1.08 trillion yen ($8.1 billion) from 1.8 trillion yen ($13.5 billion) in the headline and paragraph 1)Japan on Friday approved a plan to build the country's first casino in the western city of Osaka, paving the way for a 1.08 trillion yen ($8.1 billion) resort set to open in 2029, aimed at attracting domestic and international tourist spending. T) have spearheaded the Osaka IR project, with each owning a 40% stake in the company set up to manage the complex.

The giant resort complex located on Yumeshima, a reclaimed island in Osaka Bay due to hold the World Expo in 2025, will also include hotels, a conference centre, shopping mall, museum and ferry terminal, while high-rollers will have access to an adjacent helicopter pad. Another 20 companies hold the remaining 20%, according to a local government document, which said MUFG Bank (8306. T) would provide 550 billion yen of project financing for the resort. Casinos were previously illegal in Japan along with other private gambling, but a 2018 integrated resort (IR) law provided exception to casino games such as poker or baccarat at officially approved establishments as part of an effort to attract tourists. Prime Minister Fumio Kishida on Friday said the project would contribute to the economic growth of the Kansai area around Osaka and greater Japan after World Expo 2025, as the country aims for a post-pandemic rebound in tourist spending.   Japan is seen as a prized market for casino operators because of its affluent population of 126 million and proximity to Asia's wealthy gamblers, although opinion polls have shown many citizens worry about addiction and crime. The resort is targeting 520 billion yen of revenue annually, mostly from the gaming business, and forecasts it will attract 6 million international tourists and 14 million domestic visitors, the project document showed.  

MGM Resorts, Orix and Osaka's city and prefecture governments said they welcomed the approval and would work together to develop the project.

The national government's decision came after the pro-casino Japan Innovation Party retained the prefectural governor and city mayor offices in Osaka on Sunday. A Mainichi newspaper poll of Osaka residents this month found 45% of respondents in favour of the casino, 38% against and 17% undecided, although women and the elderly were more likely to be opposed.

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Japan's casino plans were hampered in the past by the coronavirus pandemic and a bribery scandal that led to the arrest of a high-profile lawmaker. N), Caesars Entertainment Corp and Wynn Resorts Ltd (WYNN. Only Osaka and the southwestern prefecture of Nagasaki submitted bids by an April 2022 deadline. The government on Friday said it would need more time to review the Nagasaki plan, led by Casinos Austria International. Casinos today may call to mind an over-the-top Las Vegas strip, but it wasn’t always that way.

The oldest casino in the world, the Casino di Venezia, sits on the Grand Canal in Venice.