Universal Entertainment, known for its operation of Okada Manila in the Philippines, is taking a cautious stance regarding its potential bid for an integrated resort (IR) licence in Japan. During a shareholders meeting held on March 27, the company refrained from making any commitments about participating in the upcoming bidding process, which is set to run from May to November 2027.
In the previous round of bidding, only one of the three available licences was awarded. This went to a joint venture between MGM Resorts from the United States and Japan's Orix Corp, which is developing a massive $10 billion IR in Osaka, expected to open its doors in 2030. Meanwhile, the second contender, Kyushu Resorts, led by Casinos Austria, faced rejection due to concerns regarding its financial backing.
Will Manila Challenges Discourage Japan Bid?
Universal Entertainment, based in Tokyo, seems like a natural fit for Japan's burgeoning gaming market. Founded in 1969 by Kazuo Okada, a prominent figure in the gaming industry, the company is primarily recognized for manufacturing gaming machines, including popular pachinko and pachislot games. However, its decade-long experience in the land-based casino sector adds to its credibility.
Okada Manila, which is managed by its subsidiary Tiger Resort, Leisure and Entertainment (TRLEI), opened in 2016 in the Philippine capital. Unfortunately, the resort has recently encountered significant challenges, struggling with softer gaming demand and a slow recovery in tourism following the COVID-19 pandemic.
In 2025, Okada Manila reported a gross gaming revenue (GGR) of PHP27.81 billion (approximately $463.6 million), reflecting a 20.1% decline compared to the previous year. The earnings before interest, taxation, depreciation, and amortization (EBITDA) also saw a sharp drop, coming in at PHP4.27 billion, down 44% year-on-year.
In light of these issues, S&P Global downgraded Universalâs credit rating from âBâ to âB-â in December, citing ongoing underperformance in its Philippine operations. While the company maintains a stable long-term outlook, one must wonder if the declining performance, coupled with shifting gaming trends and global economic uncertainties, will deter Universal from entering the bidding process in Japan.
At the shareholders meeting, Universal addressed the topic of the IR bid with a succinct statement: âOpportunity acknowledged; stance remains cautious. No decisions on consortium participation or investment structure.â This highlights the company's reluctance to rush into a decision while it evaluates the current landscape.
About the Author
Marjorie Preston has been immersed in the gaming industry since 2007, with a particular focus on Asian markets since 2020. When not covering the latest in gaming, she enjoys writing about travel and film, as well as playing the drums.
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