Japan IR Bidding Resumes May 2027 for Casino Licenses

Japan IR bidding enters its second phase as the government confirms May 6 to November 5, 2027, as the official application window for local governments seeking casino licenses. Following the first round of applications, only Osaka secured approval out of two prefectures that applied, with the JPY1.51-trillion (US$9.56-billion) MGM Osaka project currently under construction. Japan casino integrated resorts face a maximum cap of three nationwide locations under current legislation. The Osaka development, situated on Yumeshima Island, is scheduled to open in late 2030. This second bidding round represents a crucial opportunity for additional prefectures to participate in the nation’s casino liberalization initiative.

Japan Confirms Second Application Window for Casino Integrated Resorts

The Cabinet approved the second application window through an amendment to a Cabinet Order under the IR Implementation Act on March 10, according to the Japan Tourism Agency. The revised order takes effect on March 13.

Local authorities will submit applications during a six-month period beginning May 6, 2027, and closing November 5, 2027. The Japan Tourism Agency, operating under the Ministry of Land, Infrastructure, Transport and Tourism, coordinates the application process.

Prefectures or ordinance-designated cities seeking to host an integrated resort must jointly prepare a district development plan with a private-sector partner. These plans require submission to the national government for approval by the Minister of Land, Infrastructure, Transport and Tourism.

Shigeki Murata, Commissioner of the Japan Tourism Agency, stated that “the development and promotion of IRs will contribute to the promotion of stay-based tourism” and represents “an important measure toward realizing a tourism-oriented nation”.

The IR Development Act stipulates a maximum of three locations nationwide. With MGM’s Osaka project already approved, the government can issue up to two more licenses in this second round. The draft order underwent a public comment period from December 17 to January 16 before final adoption.

How Do Local Governments Apply for Casino Licenses?

Prefectures and ordinance-designated cities hold exclusive authority to submit IR District Development Plans under Japan’s casino integrated resorts framework. Private operators cannot apply independently; they must partner with local authorities to develop proposals.

The application operates through a two-step process. Local governments first select a private company, often formed by a consortium, as the potential IR operator. The prefecture or city then submits an IR District Development Plan to the Ministry of Land, Infrastructure, Transport and Tourism for approval.

In order to submit an application, local governments must obtain a resolution from their local assembly at either the prefectural or city level. This resolution is also required when IR Area approval undergoes renewal. Following approval, the local government enters into an Implementation Agreement with the IR operator, which requires separate MLIT approval.

Applications must demonstrate financial strength, operational capability, and clear contributions to regional economic growth. Authorities have stressed that only proposals with strong governance and sustainable funding models will receive consideration.

Several regions are conducting feasibility studies for Japan IR bidding. Hokkaido allocated approximately JPY10 million for such reviews, while Aichi Prefecture allocated JPY277 million. Hokkaido’s population stands at 5.2 million, whereas Aichi ranks as Japan’s fourth-most populous prefecture with 7.5 million residents.

What Progress Has Been Made Since the First Bidding Round?

The initial application round yielded minimal participation, with only Osaka and Nagasaki prefectures submitting proposals. Nagasaki’s bid faced rejection due to funding uncertainties, establishing financial viability as a critical evaluation criterion. Wakayama participated in preliminary discussions but withdrew before formal submission.

MGM Osaka remains under active construction on Yumeshima Island, with all project elements now being built. The development cost stands at $7.94 billion, scheduled to open in fall 2030. MGM Resorts committed approximately $277.96 million to $317.66 million for 2026 funding. A gambling addiction center will open in 2029, one year before the resort launches.

Prime Minister Sanae Takaichi directed Tourism Minister Yasushi Kaneko in late October to promote Japan casino integrated resorts and create internationally competitive stay-type tourism. Takaichi spearheaded initial casino legislation in 2013, demonstrating long-term policy commitment. This high-level political support signals government dedication to expanding IR development beyond Osaka.

Hokkaido Governor Naomichi Suzuki indicated in late November his commitment to advancing application preparations regardless of official announcement timing. Hard Rock International serves as Hokkaido’s presumed partner. Aichi Governor Hideaki Omura is expected to announce IR pursuit intentions, with public consultation on draft implementation policy launched February 25 for a 35-year timeline proposal. Bally’s Corporation publicly expressed interest in assembling proposals for remaining concessions.