It was a thing of joy for Osaka when it was revealed that they now have what it takes to win an integrated resort (IR) license. All they are doing now is to conclude such plans.
In the meantime, the region of Wakayama believes that if they plan adequately, it would have a better chance of securing a powerful partner for a casino operation with hard to beat prices.
According to reports from Calvin Ayre, Osaka has concluded a draft as regards its policy on IR implementation. In the draft, there are several conditions an operator needs to possess before they can become a partner. It also includes plans for Request for Proposal process before 2019 ends.
In a situation where everything goes according to plan, the city of Osaka hopes that they would have named an official partner before June 2020. That’s not all, they also have high hopes that they’d have sorted out everything pertaining to the Integrated Open and have it ready for launch for the 2025 World Expo. Several experts in the industry have issued warnings that this feat may be impossible.
Mayor Ichiro Matsui made suggestions that everything would be left to the hands of operators to put forward a timeline that would be convenient for them. He also dismissed the notion that the timeframe given was not enough.
According to him “No area has received certification from the government so no one can formally announce an exact date.”
The policy clearly lays out all the requirements operators are required to meet. It was also stated that they would bear some of the cost of extending the subway line of Chuo. This is estimated to gulp about JPY 20.2 billion ( i.e. $190 million).
They are expected to also build a convention hall with a capacity of 6000 people, a casino, a 3000 room hotel, and an exhibition facility. This facility is expected to cover a minimum of 100,000 square meters.
Osaka’s bid was reinvigorated because of some factors. It was recently disclosed that the application period of Integrated resorts would be open by the government at the start of next year. From what we’ve been hearing so far, only 3 IR licenses will be granted, and Osaka is ready to take its chance.
This does not mean other regions are going to let this opportunity pass them by also as their neighbors, Wakayama is ready to give them a run for their money. Reports reaching us is that a deal has been concluded between a native landowner and the government to sell a property worth JPY 7.6 billion ($70 million).
The government decided to pay this princely sum with hopes that they would rake in a profit the moment an IR casino partner approaches them.
The strategy comes with a lot of risks as IR destinations that are more popular are still attracting a lot of suitors. The Wakayama government is not worried about any hiccup happening along the way as they believe the land is still valuable even if Wakayama does not win the IR license.