MGM Resorts (NYSE:MGM) International (NYSE: MGM) and ORIX Corporation have solidified their commitment to the development of Japan's first integrated resort, with the signing of an agreement with Osaka Prefecture and Osaka City. The agreement, announced on Thursday, will see the development of the Specified Integrated Resort Facilities Area Development Plan in Yumeshima, Osaka.
Osaka IR Corporation, a joint venture between MGM Resorts and ORIX Corporation, was established specifically for this project. The agreement was signed at the Osaka Prefectural Sakishima Government Building by Hirofumi Yoshimura, Governor of Osaka Prefecture, Hideyuki Yokoyama, Mayor of Osaka City, and Bill Hornbuckle, MGM Resorts International CEO and President.
"This is a significant moment for our company as we officially close the certification process and begin to focus on executing our vision, in partnership with ORIX, to build a world-class integrated resort in Osaka," said Hornbuckle. He further expressed his commitment to bringing best-in-class gaming, entertainment, dining and retail experiences to Japan and Osaka.
The integrated resort project is expected to inject JPY¥1.8 trillion ($13.5bn) into the economy, with MGM and ORIX each holding a 40% stake in the company. The remaining 20% will be split among local companies based in Osaka, such as railway and electric power companies.
The project is anticipated to contribute to the sustainable growth and development of tourism and the economy of Osaka and the Kansai region at large. Despite legislation being passed several years ago permitting casinos in Japan, plans for the country's first casino were only approved in April this year.
MGM Resorts International is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. The company also has a 50/50 venture, BetMGM, LLC, which offers U.S. sports betting and online gaming through market-leading brands, including BetMGM and partypoker.
InvestingPro's real-time metrics show that MGM Resorts has a market capitalization of $12.89 billion and a P/E ratio of 37.94. Despite the company's aggressive share buyback strategy and strong earnings that should allow it to continue dividend payments, as per InvestingPro Tips, the stock has been in oversold territory recently. The company's revenue growth has also been slowing down, and it is trading at a high earnings multiple.
Furthermore, the company's net income is expected to decrease this year, and the stock price movements have been volatile. However, the company's liquid assets exceed its short-term obligations, and it is expected to be profitable this year. For more in-depth insights and tips, consider subscribing to InvestingPro, which offers numerous additional tips and real-time metrics.
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