According to a report by Asian Gaming Brief (AGB), analysts at financial services company Morningstar estimate that the $10 billion Osaka resort run by casino giant MGM is likely to outperform the Singapore and Venetian Macau facilities in Las Vegas Sands in the next decade. According to a report by AGB, the Osaka Unified Resort may generate more than $4 billion in revenue by early 2030, surpassing the $3 billion and $4 billion revenues generated by Sands Singapore and Venetian Macau, respectively.
Visiting Osaka Boom:
Dan Wasiolek, Morningstar’s chief stock analyst, told the source that Osaka had recorded more than 12 million international visits before the pandemic, and that he expected the new development to attract even more Western and Chinese visits. Wasiolek reported, “This view is driven by the resort’s proximity to Osaka’s airports and business centers, which need to be strengthened through new transportation infrastructure.”
In addition, Morningstar’s research team reported that it expects the number of domestic visitors to increase because it believes that “the dense population and high income of residents of Osaka and other Japanese cities have a desire for gaming and non-gaming activities to be provided by the property. In addition, the large scale of the property should provide a lot to report for a variety of interests,” AGB reported.
Estimated revenue of $3.6 billion:
The Osaka General Resort is said to be developed on a 490,000-square-meter site located north of Yumeshima. According to the source, the artificial island in Osaka Bay will be home to casinos expected to open in 2029 or 2030. According to forecasts reported by AGB, the Osaka resort, which will be developed by MGM Resort and its partner Orix, is already expected to attract about 6 million foreign visitors and 14 million domestic tourists in the early stages of operation, generating a revenue of 520 billion yen (3.6 billion yen) annually.
“This position is due to the island nation’s gambling tendencies and high-income urban population density, which should generate strong revenue,” Wasiolek reportedly said. He said Japan’s Pachinko hall industry had seen pre-pandemic revenue levels of about $30 billion to substantiate its claims about Japan’s gambling tendencies.
Create a strong demand environment:
The revenue level may also reportedly be improved by gaming licenses, which are known to have only been approved by the city of Osaka. AGM reported that the Japanese government had planned to award city gaming licenses to Osaka and Yokohama in 2018 after passing an enforcement bill that would allow games in the country. Morningstar analysts, however, reportedly predicted the current situation. “Over time, our prognosis has shifted to one city license awarded in Osaka, which seems to be true now,” Wasiolek said.
A senior analyst at the financial services company told the source that these indicators, which show the nation’s desire for casino play, are expected to spur strong gaming demand. According to AGB, Wasiellek said, “Osaka’s metropolitan area has a population of 19 million people, its population density is about 50 percent higher than that of Singapore, far exceeds that of the United States, and the average annual household income is close to $50,000, all of which we believe should create a strong demand environment for planned integrated resorts.”
Gamblers’ Needs from Singapore and Macao:
Because of this, Wasiellek is said to believe that “there is a desire for additional gamblers that could be taken away from Osaka’s direct competitors, such as Singapore and Macau.” The analyst was quoted as advising that the Japanese resort might attract visitors from the north of Macau and Singapore. According to AGB, Wasiellek said the Osaka resort could “attract visitors from all over the world while also attracting new players from Shanghai and other coastal and northern cities in mainland China closer to Japan.”
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