Universal Entertainment Corp ‘remains cautious’ about pursuing an integrated resort (IR) licence on its home turf in Japan.
At a general shareholders meeting on 27 March, the operator of Philippines IR Okada Manila was noncommittal about its participation in the second round of bidding, from May to November 2027.
In the first round, three licences were made available to qualified bidders. But officials awarded just one, to a partnership of US-based MGM Resorts and Japanese financial services company Orix Corp. The partners are building a $10 billion IR, MGM Osaka, scheduled to open in 2030.
A second applicant, Kyushu Resorts, led by Casinos Austria, proposed an IR development in Nagasaki. Its bid was rejected based on concerns about financing.
Will Manila challenges discourage Japan bid?
Tokyo-based Universal Entertainment might be considered a natural for the emerging Japan market. Founded in 1969 by Japanese billionaire Kazuo Okada, it is known primarily as a manufacturer of gaming machines, including pachinko and pachislot games. But it has also amassed 10 years of experience in the land-based casino sector.
Okada Manila, operated by a subsidiary, Tiger Resort, Leisure and Entertainment (TRLEI), opened in 2016 in the Philippines capital.
The IR has struggled recently in the face of softer gaming demand and lagging post-Covid tourism.
In 2025, Okada Manila posted gross gaming revenue (GGR) of PHP27.81 billion ($463.6 million), down 20.1% from the previous year. Earnings before interest, taxation, depreciation and amortisation (EBITDA) came to PHP4.27 billion, down 44% year on year.
In December, S&P Global downgraded Universal’s credit rating from ‘B’ to ‘B-’ “due to persistent underperformance of its Philippine casino resort business”.
Although it said the longer-term outlook is “stable”, will the decline, along with changing trends in gaming and global economic uncertainties, keep Universal out of the bidding in Japan?
In a summary of the shareholders meeting posted 17 April, Universal addressed the IR question, saying only: “Opportunity acknowledged; stance remains cautious. No decisions on consortium participation or investment structure.”
Marjorie Preston
Marjorie began her gaming career in 2007 and has focused on Asian gaming markets since 2020. Outside of work, she writes about travel and film and plays the drums.
Original article: https://igamingbusiness.com/casino/universal-entertainment-no-decision-yet-on-japan-ir-bid/
