MGM Resorts International has made a significant commitment to developing Japan’s first casino resort by eliminating the exit clause that would have allowed them to back out of the project without penalty. This decision comes after receiving approval in April 2023 for a license to build the property in Osaka in partnership with the Orix Corporation.
The exit clause was seen as a safety net for MGM Resorts, allowing them to terminate the agreement under specific conditions such as a lack of tourism recovery, unfavorable financing terms, or unforeseen issues with the site. Despite the clause being valid until September 2026, the company decided to voluntarily remove it to demonstrate their dedication to the project.
This move was made to ease concerns among construction companies involved in the project, who were hesitant to enter contracts due to the potential uncertainty surrounding the exit clause. Construction on the new development began in December, with a planned opening date set for fall 2030. Initial tasks include reinforcing the artificial island where the casino will be located, installing power lines, and setting up fences to secure the site.
MGM Resorts’ decision to eliminate the exit clause reflects their commitment to seeing the project through to completion and underscores their confidence in the success of Japan’s first casino resort. The company’s willingness to take on the risks associated with the development demonstrates their dedication to expanding their presence in the international market and solidifying their position as a leading player in the global casino industry.
Overall, MGM Resorts’ decision to forego the exit clause in Japan’s first casino resort project is a bold move that highlights their commitment to the project and their confidence in its success. By voluntarily relinquishing the option to back out without penalty, the company is sending a strong message of dedication and determination to see the project through to completion. With construction already underway and a planned opening date set for 2030, MGM Resorts is on track to deliver Japan’s first casino resort and establish a strong foothold in the country’s growing gaming market.