S&P Global Ratings says that MGM Resorts International’s capital contribution to their casino-resort in Osaka, Japan could cost anywhere between $2 billion and $2.5 billion, in an official statement.
Per the report: “Based on the estimated $10 billion development cost and MGM’s expectation that the project could be funded at 55% debt to equity, MGM’s equity contributions could be $2 billion-$2.5 billion,” S&P Global Ratings said. “MGM believes its equity contribution could be spread over several years, perhaps 2024-2026.”
“Based on the current timeline and the likelihood that Japan will not issue a license until 2023, we do not expect material spending to begin before late 2023 or 2024″ the company added. “The project will likely take several years to complete. If the MGM-Orix consortium receives a license, MGM anticipates opening the resort in the second half of this decade.”
“MGM would need to make the $500 million license payment this year, but most of the spending would occur in 2024 and 2025. MGM estimates its investment to expand its Empire City Casino could cost $2 billion-$2.2 billion, including the license fee” they added.