Okada Manila Sees Q1 GGR Drop 17% Amidst Ongoing Market Pressures

Okada Manila, a prominent integrated resort in the Philippines, experienced a notable downturn in its first-quarter Gross Gaming Revenue (GGR), which fell by 17.2% compared to the previous year. Its parent company, Universal Entertainment Corp, has highlighted ongoing market adjustments and external pressures, including geopolitical situations in the Middle East, as key factors impacting the Philippine casino landscape.

The reported GGR for the first three months of 2026 stood at just under PHP6.47 billion (approximately $108.1 million). While this represents a year-on-year decrease, there was a sequential uptick of 9.1% from the fourth quarter of 2025.

Market Challenges and Geopolitical Impact

Universal Entertainment Corp directly linked the challenging performance to a period of adjustment within the gaming market of Entertainment City, Manila. The company specifically mentioned that the "situation in the Middle East" has contributed to a contraction of the market as a whole, making it harder for some international guests to visit the property. This acknowledgment underscores how global events can ripple through the gambling industry, affecting even regional markets.

In response to these challenges, Okada Manila is increasingly prioritizing online gaming. Universal Entertainment indicated that travel costs, partly exacerbated by the Middle East situation, have altered customer behavior. This shift has led the group to focus more on Philippine online gaming services, a strategy recently reinforced by PhilWeb Corp's confirmation of the launch of Okada Play in collaboration with Tiger Resort, Leisure and Entertainment Inc, the Universal Entertainment unit operating Okada Manila.

Revenue Breakdown by Segment

The decline in GGR was broad-based across various gaming segments within Okada Manila. VIP revenue saw a significant 19% drop year-on-year, primarily attributed by Universal Entertainment to a lower win rate.

Key facts

Mass-market table revenue also experienced a substantial decrease, falling by 24.2% to PHP2.30 billion. Gaming machine revenue, while less impacted, still declined by 8.9% to PHP2.73 billion.

Competition and Cost Pressures

Universal Entertainment noted that competition for mass-market players has intensified, leading to increased customer acquisition costs. The company stated, "Against the backdrop of structural changes in the VIP market, fierce competition with rivals to acquire mass-market customers continues, driving up customer acquisition costs." This suggests a challenging operating environment where securing and retaining players comes at a higher price.

Despite the revenue declines, the integrated resort segment maintained profitability. This was attributed to effective cost management, including lower fixed costs, reduced selling, general and administrative expenses, decreased depreciation following an asset revaluation in the prior fiscal year, and adjustments to the Okada Manila loyalty program. These measures highlight the company's efforts to mitigate financial impact amidst a difficult market.

Future Outlook and Online Gaming Focus

Looking ahead, Universal Entertainment anticipates that gaming competition in the Philippines will become even more rigorous. The company also warned that the impact of the Middle East situation could persist beyond the second quarter. Consequently, the growth of online casino operations is expected to become an increasingly vital avenue for Okada Manila throughout 2026. This strategic pivot reflects a broader industry trend towards digital platforms, especially when physical travel and visitation face external constraints.

For video poker players and casino enthusiasts, these developments in the broader casino market illustrate the ongoing shifts in the industry. The increasing emphasis on online gaming by major integrated resorts like Okada Manila suggests that digital platforms will continue to offer more diverse gaming options, including video poker. Players may find more online opportunities as operators adapt to evolving market conditions and customer preferences.

Fuente: iGaming.org Casino News, https://igaming.org/casino-news/okada-manila-q1-ggr-falls-17-as-market-pressure-continues/