April 14 (UPI) -- The Japanese government awarded the Osaka prefecture the rights to construct the nation's first integrated casino resort.
The prefecture released a statement saying they hoped the resort, which is expected to be operational by 2029, would become "an engine of sustainable economic growth in Osaka and Kansai."
The government said the hotel could drive the tourism economy for all of Japan.
"In addition to contributing to the development of the Kansai region following the 2025 World Exposition in Osaka, we hope [the casino] will become a tourism base that promotes Japan's charms to the world," said Japanese Prime Minster Fumio Kishida.
"Integrated resorts are a necessary initiative in promoting our country as a tourism-based nation. They'll attract visitors from Japan and abroad."
While the proposal has gained the approval of the Japanese government it still needs to clear regulatory hurdles like the acquisition of gaming licensees and an evaluation from the Japan Casino Regulatory Commission.
The announcement was also met with protests by demonstrators concerned the resort could lead to a rise in gambling addiction.
The proposed project is expected to cost $8 billion and involve a 40% investment from US-based MGM resorts and a 40% investment from Japan-based Orix Corp.
Japan's Ministry of Land, Infrastructure, Transport and Tourism will require the resort to adhere to certain conditions, including a requirement to investigate gambling addiction and explore solutions.
So-called integrated resorts are also being proposed elsewhere in Japan, including in Nagasaki, where the local authorities are still mulling approval.
