MGM Resorts CEO Talks Osaka Plans and More in New Interview

Article ByDavid Weir

July 24, 2023

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Posted in: US Gambling News, US Casino News

MGM Resorts International, the biggest gaming operator in the United States, is pushing ahead with its international expansion plans – including its new casino resort in Osaka, Japan.

The company’s CEO, Bill Hornbuckle, recently shared some insights into the project’s time line and expectations, speaking in a wide-ranging interview with the Las Vegas Review-Journal.

According to Hornbuckle, construction of the integrated resort in Osaka is expected to commence by mid- to late-2024. The company is targeting a 2030 opening for its $8.1 billion venue, which is part of their wider investments in Asia.

Hornbuckle also discussed those projects, such as hospitality investments in the United Arab Emirates, and MGM’s newly signed deal with Marriot International Hotels for a joint rewards program.

The Location: Yumeshima Island

Some key takeaways include new information on MGM’s Osaka casino project, which will be the first casino resort in Japan when it eventually opens around 2030.

The integrated resort will be located on Yumeshima Island, an artificial island in Osaka Bay. Originally built to compete for the ’72 Olympics, the island has remained largely undeveloped since.

However, it is set to host the World Expo in 2025, which will bring significant infrastructure and tourism to the area.

“We’re looking forward to signing our area development plan this fall and starting in earnest on the ground, hopefully, by middle to late next year in terms of pylons and beginning construction,” Hornbuckle said.

Challenges and Delays

Despite the optimism, the project has faced some delays. The Governor of Osaka Prefecture, Hirofumi Yoshimura, acknowledged that it would be challenging to meet the previously planned 2029 opening date.

“It’s early in the game. But for us, it’s been a 12-year journey,” Hornbuckle said, illustrating his company’s long-term view of the project.

Last week, we reported on allegations from a Japanese anti-casino community group that MGM’s 2022 acquisition of LeoVegas was, prior to the purchase, illegally targeting Japanese customers with their online casino operations – which makes MGM ineligible for a casino license.

MGM called the accusation “completely unacceptable, because it is unfounded.” It remains to be seen how that could affect the launch. But Hornbuckle seems undeterred.

Looking Beyond Japan

While Japan is a significant focus for MGM Resorts, the company is also expanding into new and existing international markets.

Its casinos in Macau have this year back in gear after a sluggish recovery from the COVID-19 pandemic in the Chinese special administrative region.

“Pre-pandemic, we were below 10% market share [in Macau]. I think we’re enjoying 13, 14 and 15% in some months this year. It’s a big piece of our business and an important link to Asia for us. It’s off to a great start as far as we’re concerned,” Hornbuckle said.

The CEO also mentioned expansion into Thailand and the UAE. In the UAE, MGM has partnered with Wasl Asset Management Group on a hospitality project currently under construction.

Its plan is to have an MGM, Bellagio, and an Aria hotel in the Jumeirah Beach area of the city of Dubai. Which is also the location of the world’s tallest building, the Burj Khalifa.

As for a casino on the site, Hornbuckle was tight-lipped, but suggested probably not in the near future. The secular Islamic UAE has strict gambling laws. But it has negotiated a singular casino license for Wynn Resorts to run an integrated resort.

“We understand what the national government is undertaking. We’re highly focused on Dubai. We think that over time, it could be a unique opportunity,” he said.

“But for now, hospitality is our key focus there, and we’ll see what the government does.”

New York License “No Given”

In addition to international expansion, MGM Resorts is also continuing its domestic efforts in the U.S. The Las Vegas-based operator is competing for one of three full casino licenses available in New York.

The company already operates the Empire City Casino at the Yonkers racetrack, and is seen as a favorite to secure one of the full-scale licenses.

However, Hornbuckle emphasized that nothing is guaranteed, and the company is doing everything it can to meet the requirements of the New York Casino Commission.

“We take nothing for granted. There are three licenses. Obviously, we enjoy Yonkers today, so we’re in a unique position, along with Aqueduct (operated by Genting Group as Resorts World) that we’re in the marketplace with a racino. But there are no givens,” he said.

Other operators aiming for a license in New York include Las Vegas Sands, Wynn Resorts, Caesars Entertainment and hip-hop mogul Jay-Z and New York City real-estate mogul Larry Silverstein.