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MGM Casinos are reportedly set to make moves into the Japanese market as part of a global domination drive that is likely to assist in further pushing their stock. MGM resorts are enjoying a great time when it comes to their valuation on the New York Stock Exchange, and it’s a sign of a forward-thinking company that’s looking to diversify its portfolio rather than resting on its laurels.
Part of MGM’s push into Japan involves an advanced bid to build a massive $10 billion resort and casino in Osaka, with moves to possibly sell The Mirage in Las Vegas. The sale of The Mirage is chiefly due to the fact they have acquired the Cosmopolitan, which sits between CityCenter and the Bellagio, and a move to corner the south end of the strip.
Japan is opening up nicely when it comes to its casino operations, and MGM believes that there is limited competition at present, hence the push to invest large sums now. MGM will no doubt look at online casino action given how much does an online casino earn, especially in relation to the outlay needed to get them up and running.
That isn’t to say that the MGM brand isn’t afraid to spend big to make an impression when it comes to their brick and mortar establishments in Japan. The $10 billion investment in Osaka is said to be part of a push to build three hotels with a total of 2500 rooms.
The development will also include a 400,000 square feet conference facility and a 3500 seat theater. MGM resorts are going big as they are well aware of the potential, as evidenced by comments made by CEO Bill Hornbuckle;
“It is an honor to be selected as Osaka’s partner in developing an integrated resort. I commend the city in undertaking a comprehensive and thoughtful process to meet its goal of developing a world-class integrated resort in Osaka.”
MGM is waiting for the relevant casino licenses to be awarded, which is expected to be something of a formality, and this is expected to occur in 2022, and Hornbuckle expects as many as 20 million annual visitors to their planned casino operation.
“Nowhere is the future of tourism and hospitality more exciting than Japan”.
It’s interesting to note how MGM Resorts’ revenue is now more spread and not focused solely on one location, as had been the case in the past.
Of the $2.3 billion worth of revenue for Q2 of 2021, less than half came from their Las Vegas activities, and as much as $300 million came from its Chinese operations.
Shares in MGM Resorts are expected to experience something of a spike once the licenses are awarded, and the ground is broken on their Osaka resort developments.
Such good news stories wouldn’t have even have been considered during the peak of the coronavirus, which had a massive effect on the offline casino action but did, thankfully, aid the revenue made on their online assets.
