Analysts at financial services firm Morningstar estimate the $10 billion Osaka resort run by casino giant MGM has the potential to outperform the Singapore and Venice Macau facilities in Las Vegas Sands in the next decade. According to the AGB, the Osaka complex resort may generate more than $4 billion in revenue by the early 2030s, exceeding the $3 billion and $4 billion in revenue generated by Sands Singapore and Venice Macau, respectively.
Open Osaka Visit:
Morningstar's chief stock analyst Dan Wasiorek told sources that Osaka had recorded more than 12 million international visits before the pandemic and expects the new development to attract even more Western and Chinese visits. "This prospect is encouraged by the proximity of resorts to Osaka's airports and business centers, which should be enhanced by the new transportation infrastructure," Washiorek reported
In addition, Morningstar's research team reportedly said, "The dense population and high income of residents in Osaka and other Japanese cities have an appetite for games and non-game activities to be offered at the property. In addition, the large size of the property will provide many things to see and do for various interests," the AGB reports.
Revenue expected to be $3.6 billion:
The Osaka complex resort will reportedly be developed on a 490,000-square-meter site north of Yumeshima. Sources say the artificial island in Osaka Bay will be home to casinos expected to open in 2029 or 2030. The Osaka resort, to be developed by MGM Resorts and its partner Orix, is already expected to attract about 6 million foreign tourists and 14 million domestic tourists in the early stages of operation, generating 520 billion yen ($3.6 billion) in annual revenue, according to forecasts reported by the AGB.
"This position is due to the island nation's gambling tendency to produce strong profits and the high-income urban population density," Waciolek reportedly said. He reportedly said Japan's Pachinko Hall industry had a pre-pandemic revenue level of about $30 billion to prove its claims about Japan's gambling tendencies.
Create a strong demand environment:
Game licenses reportedly approved only for the city of Osaka could also boost revenue levels. According to AGM reports, the Japanese government passed an enforcement bill in 2018 to allow games in the country and reportedly planned to award city game licenses to Osaka and Yokohama. However, Morningstar analysts reportedly predicted the current situation. "Over time, our prognosis has shifted to just one city license in Osaka, and now it appears so," Wasiorek was quoted as saying.