Okada Manila eyes online gaming expansion targeting Filipinos

February 14, 2025

Okada Manila eyes online gaming expansion targeting Filipinos

Universal Entertainment Corp, the parent company of Okada Manila, has announced an expansion of its online gaming platform for Philippine customers while strengthening its membership programme, Reward Circle. The initiative aims to enhance the resort’s digital presence and attract a broader customer base, reflecting the casino industry’s increasing integration of online and land-based gaming experiences.

In its financial report for the fiscal year ended December 31, 2024, Universal Entertainment Corp announced its plans, stating, “We will work to expand the reach of our new online gaming platform targeting Philippine locals, which began operating in 2024, and conduct additional promotions through our membership programme, Reward Circle.”

The company launched its new platform in 2024, building upon its online gaming operations that began in April 2022. Reward Circle is set to play a key role in boosting customer engagement and loyalty as Okada Manila enhances its digital offerings.

In addition, Universal Entertainment is investing in workforce development to improve Okada Manila’s marketing capabilities. The company is actively recruiting and training staff to enhance customer outreach and deliver more engaging experiences.

The resort is also planning large-scale promotional events, combining entertainment and hospitality offers to attract more visitors. These initiatives are designed to increase foot traffic, particularly among tourists from Japan, South Korea, and other Southeast Asian countries.

Under the Philippine Inland Gaming Operator (PIGO) system, land-based casinos in the country are authorised to provide online gaming services to domestic customers. And so, Universal Entertainment sees this expansion as a critical step in maintaining competitiveness in a rapidly evolving industry, particularly as digital gaming continues to gain popularity.

Despite these efforts, Universal Entertainment faced a challenging financial year in 2024. The company’s net sales dropped by 29.4 percent year-on-year to JPY 126.33 billion (€782 million), resulting in a net loss of JPY 15.57 billion (€96 million). Okada Manila’s net sales also fell 15.4 percent year-on-year, with adjusted EBITDA declining 34.8 percent to JPY 19.56 billion (€121 million).

New moves to cover losses

A key factor in these losses was the continued decline in VIP guest numbers, largely due to the ongoing slowdown of the junket business. The mass market and gaming machine segments have seen steady growth since pre-pandemic levels in 2019, but overall performance in 2024 remained weaker than in 2023, when demand rebounded sharply post-pandemic.

To strengthen its financial position, Universal Entertainment has announced an upcoming initial public offering (IPO) for Okada Manila on the Philippine Stock Exchange. The IPO, expected in 2025, aims to raise between €460 million and €690 million, reinforcing confidence in the resort’s long-term growth potential.

Meanwhile, Universal Entertainment has delayed the transfer of shares in Asiabest Group International Inc., initially planned for early 2025. The transfer is now expected to be completed by the end of April 2025, with privately-owned real estate developer PremiumLands Corp acquiring Asiabest’s shares for PHP 510.4 million (€8.4 million). The delay is attributed to regulatory requirements and the time needed for a tender offer process.