MGM not committed to Osaka IR investment

Yumeshima
Yumeshima file

In an earnings conference call held at the end of last week, MGM President and CEO Bill Hornbuckle revealed that his firm was not committed to moving forward with its multi-billion dollar IR investment at Yumeshima, Osaka.

“There are a great deal of things to be worked out there,” Hornbuckle stated, “and we’ll only make this investment if we think it’s going to be prudent; if we think it’s going to pay the kind of returns that it needs to pay and to meet our expectations. So there’s a long way to go.”

MGM had never before cast public doubt on its commitment to build the Yumeshima IR, where it is currently the only operator making a bid.

“We like that we’re not fully all in on this investment,” Hornbuckle added.

He also noted that MGM would “have between a 40 percent and 45 percent stake in that operation” if it moves forward.

Looking ahead, Hornbuckle stated that MGM currently presumes that the Osaka RFP process will move ahead in early 2021, though they have no definite information.

He also made the oblique but perhaps meaningful comment: “We like the fact that there’s probably going to be a delay in the reopening of some of the conversations that will hopefully make this a better investment for anybody interested in it, most notably us.”

That appears to be a hint that he expects the Japanese national government to reconsider its regulatory framework for IR development.

Related Articles

MGM Las Vegas

MGM Resorts LV properties return to full gaming floor occupancy

U.S. based casino operator MGM Resorts has been given the go-ahead by the Nevada Gaming Control Board to return their gaming floors to full pre-pandemic occupancy with no social distancing. 
Yumeshima site, Osaka, IR

Osaka frets over loss of leverage and scaled-back IR ambitions

The authorities in Osaka are concerned that they have lost leverage in negotiations with the MGM-Orix IR consortium, and that poor business conditions will force a significant scaling back of ambitions, according to the reporting of the Nihon Keizai Shinbun.

BetMGM sees U.S/Canada sports betting market at $32b

BetMGM, the online joint venture between MGM Resorts and the U.K.'s Entain, said it sees the long-term sports betting market in the U.S. and Canada as being worth $32 billion and expects its share in the U.S. to be between 20 and 25 percent.

MGM Japan promotes hospitality program with Kansai Gaidai University

MGM Japan, hoping to build a major IR at Osaka’s Yumeshima island, is drawing attention to its recently concluded hospitality education program that it supported in partnership with Kansai Gaidai University.

MGM Resorts appoints Jeff Mochal to lead corporate communications

MGM Resorts International announced that Jeff Mochal has joined the company as Senior Vice President of Corporate Communications. Mochal will oversee the company's corporate communications and strategic positioning, leading issues management strategy and proactive media relations, internal communications and social impact and sustainability messaging strategies for issues affecting MGM Resorts on a global scale.
Japan’s IR process lurches forward with Nagasaki selections, Osaka invite

Japan’s IR process lurches forward with Nagasaki selections, Osaka invite

Japan’s IR process appears to move forward in fits and starts, but there were two noteworthy events to emerge at the end of the week that advance the slow process towards the country's first casinos.

Osaka seeks more bidders, gives April 6th deadline

The Osaka Prefecture, which currently has MGM Resorts as a sole bidder for a license, has said it will consider further proposals, with documents to be submitted by April 6th.

MGM Resorts reduces its stake in real estate arm

MGM Resorts International has announced the completion of the redemption of approximately 37.1 million of its operating partnership units of MGM Growth Properties Operating Partnership LP for aggregate cash proceeds of approximately US$1.2 billion. Following the redemption, MGM Resorts' ownership in the Operating Partnership was reduced from 53.0 percent to 42.1 percent.

MGM Resorts, BetMGM make commitment to responsible gambling

MGM Resorts International and BetMGM have made a unified commitment to responsible gaming and to providing the tools needed to help players make responsible, informed decisions while playing.

Pansy Ho sells off a further US$56.7 million in MGM

MGM China Co-chair Pansy Ho has sold more of her shares in parent company MGM Resorts, this time offloading about $56.7 million. The move has reduced her position from 1.66 percent to 1.36 percent.