MGM Resorts has voluntarily relinquished the early exit clause that would have allowed it to exit its casino resort agreement in Japan without penalty. [Image: Shutterstock.com]
MGM Resorts International is now fully committed to developing Japan’s first casino resort after eliminating the exit clause that would allow it back out of the project without paying a penalty. It got the all-clear in April 2023 for a license to build the property in Osaka alongside its main partner, the Orix Corporation.
The exit clause was a get-out-of-jail-free card for the Las Vegas-based casino company, allowing it to terminate its agreement under certain conditions, such as tourism in the region not getting back to pre-pandemic levels, financing terms not making sense, or any unforeseen issues with the site.
MGM reportedly wants to show good faith by voluntarily eliminating the option
While the clause was valid until September 2026, MGM reportedly wants to show good faith by voluntarily eliminating the option. Some construction companies had expressed concerns about entering contracts for the work due to possible uncertainty.
Work on the new development began in December, and the current planned opening date is fall 2030. Initial tasks include fortifying the artificial island on which the casino will lie to make sure it is fully fortified, as well as laying power lines and setting up fences.
