A senior executive at Orix Corp, one of MGM Resorts International’s Japanese partners who proposed the development of the Osaka casino resort, said the two companies would each hold a 40% stake and the remaining 20% would consist of some companies in the Kansai region.
Orix executive director Hitomaro Yano also said the company’s initial investment in the 1.8 trillion yen (about $9.55 billion) plan would be about 200 billion yen, or about $1.76 billion.
He was speaking on Thursday, as reported by Japan’s Bloomberg News, after reporting Orix’s quarterly results through Sept. 30.
Mr Yano added that Orix’s initial contribution would be covered by cash.
He also added that about half of the total cost of the Osaka Unified Resort (IR) would be financed by non-custodial loans (as in Japan it is known as a large casino complex with gathering and tourism facilities). Non-custodial loans are a type of collateral, typically secured by real estate.
According to Bloomberg, the parties with 20% interest in the Osaka plan include: France’s VINC Airports, which has a management contract for Kansai International Airport; Kansai Electric Power Co., Gintetsu Group Holdings Inc., Panasonic Corp., and other Kansai-related companies, according to VINC’s corporate website.
In late July, Osaka authorities cited the possibility of an initial opening of IR as early as 2028 to 2030.
On October 1, the Japanese government held an application period for local authorities to host casino resorts and announced the weighting to be given when making such applications.
Under the liberalization program, up to three resorts will be allowed nationwide in the first phase. Currently, only three communities are competing to hold large-scale IR events: Osaka, Nagasaki, and Wakayama.
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