Put forth by the city and Osaka prefecture, the project aims to open a casino, conference centre and other facilities in 2029 with ¥1.8 trillion (US$13.5 billion) of initial investment.

Casinos were previously illegal in Japan along with other private gambling, but a 2018 integrated resort (IR) law provided exception to casino games such as poker or baccarat at officially-approved establishments as part of an effort to attract tourists.

US casino operator MGM Resorts International and local partner Orix Corp have spearheaded the Osaka IR project, with each owning a 40% stake in the company set up to manage the complex.

Another 20 companies including Osaka-based Panasonic, Kansai Electric Power and West Japan Railway hold the remaining 20% stake, according to a local government document.

MUFG Bank and Sumitomo Mitsui Banking Corp will provide ¥550 billion in project financing for the resort, the document showed.

The 492,000-square-metre resort complex is located on Yumeshima, a reclaimed island in Osaka Bay, and will also include a hotel, shopping mall and ferry terminal. Japan will host the World Expo on the island in 2025.

The government’s decision came after the pro-casino Japan Innovation Party retained both the office of prefectural governor and city mayor in Osaka on Sunday.