Universal Entertainment Corp, the operator of the prestigious Okada Manila in the Philippines, has expressed a noncommittal stance regarding its participation in Japan’s upcoming second round of integrated resort (IR) bidding.
During a general shareholders meeting on March 27, the firm maintained a position of strategic caution as the window for new applications approaches in 2027.
Manila Struggles Impact Strategy
While Universal was founded by Japanese billionaire Kazuo Okada and maintains a deep history in the domestic pachinko market, the underperformance of its Philippine resort has created financial headwinds.
In 2025, Okada Manila reported a 20.1% decline in GGR to PHP27.81 billion ($463.6 million), while EBITDA plummeted 44% year-on-year.
These figures led S&P Global to downgrade Universal’s credit rating to ‘B-’ in December. In a summary of the meeting posted on April 17, the board stated:
“Opportunity acknowledged; stance remains cautious. No decisions on consortium participation or investment structure.”
A Highly Competitive Landscape
The second round of bidding follows the first-round success of the MGM Resorts and Orix Corp partnership, which is currently constructing the $10 billion MGM Osaka, set to open in 2030. Another proposal from Kyushu Resorts in Nagasaki was recently rejected due to financing concerns, highlighting the rigorous standards set by Japanese officials.
Universal Entertainment Corp is currently evaluating whether to enter a consortium or maintain its focus on stabilizing its Philippine operations before committing to a multi-billion dollar project on its home turf.
