TLDR MGM Resorts says construction on MGM Osaka is progressing on schedule, with over 40% of foundation piles installed and the first steel structure in place. The $10 billion integrated resort on Osaka’s Yumeshima Island is expected to open in 2030 as Japan’s first legal casino resort. MGM and Orix Corporation each hold 40% of the project, with MGM serving as the sole licensing operator. The company plans to spend $200 million to $225 million on the Japan project this year, largely funded through a yen-denominated credit facility. Texas Capital analyst David Bain values MGM’s Japan resort at $9 per share, and MGM stock rose 1.1% in pre-market trading after the Q1 earnings update.
MGM Resorts International says its massive casino resort project in Osaka, Japan is making steady progress. The company shared the update during its first-quarter earnings call.
The project, known as MGM Osaka, is being built on Yumeshima Island. It carries an estimated price tag of around $10 billion.
When completed, it will be Japan’s first legal casino resort. The planned opening is set for 2030.
MGM and Orix Corporation are the two main partners behind the development. Each company holds a 40% stake in the project.
The resort is designed to include hotels, convention centers, entertainment venues, and large casino floors. MGM will serve as the sole licensing and operating partner once the resort opens.
Construction Hits Key Milestones
During the earnings call, MGM management said more than 40% of the foundation piles have been installed or finished. The first concrete floor has been completed.
The first structural steel has also been put into place. These updates suggest the project is on track with its planned timeline.
MGM expects to spend between $200 million and $225 million on the Japan project this year.