Universal Entertainment: Still no decision on its Japan IR bid

(AsiaGameHub) –   Universal Entertainment Corp is maintaining a cautious stance regarding seeking an integrated resort (IR) license in its native Japan.

During its general shareholders meeting on March 27, the operator of the Philippine IR Okada Manila did not commit to participating in the second round of bidding, which runs from May to November 2027.

In the first bidding round, three licenses were offered to qualified candidates. However, officials awarded only one— to a partnership between U.S.-based MGM Resorts and Japanese financial services firm Orix Corp. The pair is constructing the $10 billion MGM Osaka IR, set to open in 2030.

A second applicant, Kyushu Resorts (led by Casinos Austria), proposed an IR development in Nagasaki. Its bid was rejected due to concerns over financing.

Will Manila’s challenges dissuade Universal from Japan IR bid?

Tokyo-headquartered Universal Entertainment could be seen as a natural fit for Japan’s emerging IR market. Founded in 1969 by Japanese billionaire Kazuo Okada, the company is primarily known for manufacturing gaming machines like pachinko and pachislot games, but it also has a decade of experience in the land-based casino sector.

Okada Manila, operated by Universal’s subsidiary Tiger Resort, Leisure and Entertainment (TRLEI), opened in the Philippine capital in 2016.

Recently, the IR has faced struggles amid softer gaming demand and slow post-Covid tourism recovery.

In 2025, Okada Manila reported gross gaming revenue (GGR) of PHP27.81 billion ($463.6 million), a 20.1% drop from the previous year. Its earnings before interest, taxation, depreciation, and amortisation (EBITDA) stood at 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”.

While S&P noted the longer-term outlook is “stable”, will this decline— along with shifting gaming trends and global economic uncertainties— keep Universal out of the Japan bidding?

In a summary of the shareholders meeting posted on April 17, Universal addressed the IR question, saying only: “Opportunity acknowledged; stance remains cautious. No decisions on consortium participation or investment structure.”