The Osaka prefecture has selected the business consultancy Deloitte Touche Tohmatsu for the provision of support services for the development of its upcoming integrated resort. The construction of the new casino and hospitality venue is expected to revolutionize gaming in Japan.
Under its contract with the prefecture, the consultancy will be tasked with overseeing various aspects of the special-purpose company that is working on the resort on Yumeshima Island in Osaka Bay. Deloitte will, therefore, be responsible for watching over the financial, legal and technological details of the project.
During the financial year 2023-24, Deloitte Touche Tohmatsu will closely follow the business activities of the consortium working on the Osaka resort. As first reported by GGR Asia, Deloitte was the only bidder in the Osaka prefecture’s request-for-proposal. The fee for its work will be around $593,000, including consumption tax.
The IR Project Had to Be Delayed
The Osaka integrated resort is a multi-billion project backed by a consortium that encompasses major gambling powerhouses such as MGM Resorts and Orix. The two companies have a 40% equity stake each, while the remaining 20% is distributed among other investors in Japan.
The realization of the project will cost an estimated $8.4 billion and is expected to be completed by 2030. This is a significant delay from the original deadline, which expected the construction to finish in 2025, in time for the Osaka-Kansai Expo.
The original time frame was rendered unrealistic because of various setbacks, including the COVID-19 pandemic and the withdrawal of bidders. The political conflicts in Japan, which included accusations of bribery and influence peddling also affected the projected opening date.
Despite the setbacks, Osaka’s governor, Hirofumi Yoshimura, is confident in the success of the project. Speaking about the delay he said that the postponement might have been for the better. Yoshimura added that he believes the cultural significance of Japan will attract many tourists to the new integrated resort, once it has been completed.
However, not everyone is optimistic about the prospects of an integrated resort in Osaka. Last year, opponents of the project tried to push for a referendum that would cancel the development. Despite the pessimism of anti-gambling activists, MGM Resorts is convinced that the property will contribute millions to local taxes.