Osaka's bid to host one of Japan's first IR on man-made Yumeshima island draws public backlash

Osaka’s proposal to host one of Japan’s first integrated resorts, as part of the country’s ongoing casino race, has begun raising concerns and drawing backlash from opposing parties. Some stakeholders have shown preoccupation in regards to development costs for the proposed project, as well as concerns over a potential surge in crime and gambling addiction.

An integrated resort has been proposed for Yumeshima -”Dream Island”-, a man-made island in Osaka, the third most populous city in Japan. The pitched project is one of the leading proposals for the country’s casino race, which would mark the debut of such venues in the Asian nation after the government legalized casino developments six years ago.

The western Japanese city is now considered by many the frontrunner after the local assembly recently approved a bid that will be sent to the central government by a 28 April deadline, reports The Guardian. The resort would act as “an engine of sustainable economic growth for Osaka and the region,” said Osaka mayor Ichiro Matsui.

The $7.9 billion complex would feature hotels, conference and entertainment facilities and a state-of-the-art casino. However, Matsui and Osaka officials are now facing a backlash from citizens’ groups, which are concerned about the cost of developing Yumeshima, which was built on reclaimed land during the 1970s.

Additionally, the city’s assembly has received a growing number of petitions asking for the project to be dropped -or at minimum put to a referendum- amid concerns about the casino becoming a hub for organized crime and gambling addiction. 

Other critics have also pointed to Osaka’s decision to make taxpayers bear $630 million at the request of the resort’s prospective operators -MGM Resorts and Japanese financial services group Orix- towards the cost of protecting Yumeshima against soil liquefaction, further reports The Guardian.

According to polls conducted by local media organizations, about 60% of Japanese oppose casino construction. While the government has attempted to address these concerns through limiting licenses to three sites and the introduction of a series of conditions -including an admission fee for nations and a limit of 10 visits a month- some believe this may not be enough.

Concerned parties believe the new integrated resorts could further fuel problem gambling in a country where gaming addiction already runs rampant. A 2017 study by the health ministry found that about 3.6% of the adult population were through to be addicted to gambling, a high rate blamed on pachinko: no one knows what could happen with the introduction of casinos.

“What I object to most is that these casinos are aimed mainly at Japanese people,” Teruo Sakurada, a professor at Hannan University in Osaka, told the cited source. Sakurada is part of a group calling for a local referendum on the project, and believes a majority would vote it down. “If the casino is built, they will have to pay for the land to be developed, and they will continue to pay in other ways, such as a rise in gambling addiction.”

While Japan’s casino race is likely to still draw controversy going forward, it has thus far attracted the attention of many gaming and hospitality giants from all over the world. Earlier this month, Bally's made public its interest in pursuing an integrated resort opportunity in Fukuoka.

While the odds are not favorable for this proposal -Fukuoka has not declared itself a candidate location and has already backed an existing bid for Nagasaki- the company’s intention is to push for the development privately, seeking to gain support prior to the 28 April deadline.