Universal Entertainment Corp and the Future of Online Gaming in the Philippines
Universal Entertainment Corp, the parent company of the renowned Okada Manila casino resort, is making significant strides in the online gaming sector. In a recent report detailing its full-year performance for 2024, the company announced plans to enhance the penetration rate of its newly launched online gaming platform, specifically targeting customers within the Philippines. This initiative marks a pivotal moment for Universal Entertainment as it seeks to adapt to the evolving landscape of the gaming industry.
Launch of the New Online Gaming Platform
The new online gaming platform was officially launched in 2024, a move that reflects Universal Entertainment’s commitment to expanding its digital footprint. This platform aims to cater to the growing demand for online gaming among Philippine customers, providing them with a seamless and engaging gaming experience from the comfort of their homes. The launch is particularly timely, as the Philippine gaming market continues to evolve, with increasing interest in online gaming options.
Regulatory Framework for Online Gaming
In the Philippines, land-based casino operators are permitted to offer online gaming services to domestic customers, a framework regulated by the Philippine Amusement and Gaming Corp (PAGCOR). This regulatory body oversees what is known as the Philippine Inland Gaming Operator (PIGO) business, which allows casinos like Okada Manila to extend their services beyond traditional gaming floors. The ability to operate online not only diversifies revenue streams but also positions these establishments to capture a broader audience.
Okada Manila’s Online Gaming Journey
Okada Manila first ventured into online gaming for domestic customers back in April 2022. Since then, the resort has been actively working to enhance its online offerings. The recent announcement from Universal Entertainment indicates a renewed focus on this segment, with plans to implement additional promotions through its membership program, Reward Circle. This initiative aims to incentivize customer engagement and loyalty, ultimately driving more traffic to the resort.
Enhancing Visitor Experience
Universal Entertainment is not just focusing on online gaming; it is also committed to enhancing the overall visitor experience at Okada Manila. The company plans to conduct extra promotions and events through its Reward Circle membership program, which is designed to attract both local guests and international tourists. In addition to regular hotel and food and beverage events, Universal Entertainment aims to host large-scale events that leverage the resort’s extensive facilities. By attracting foreign media and promoting these events, the company hopes to boost its visibility and appeal to a wider audience.
Strengthening Marketing Capabilities
To support these initiatives, Universal Entertainment is actively recruiting and training personnel to bolster its marketing capabilities within the gaming sector. The goal is to attract a diverse range of guests, including local residents and tourists from neighboring countries such as Japan and South Korea. This strategic approach is essential for positioning Okada Manila as a premier destination for both gaming and entertainment in the region.
Financial Performance Overview
Despite these ambitious plans, Universal Entertainment’s financial performance for 2024 has raised concerns. The company reported net sales of JPY126.33 billion (approximately US$825.9 million), reflecting a significant decline of 29.4 percent compared to the previous year. Okada Manila itself posted net sales of JPY81.98 billion, down 15.4 percent year-on-year. The adjusted segmental earnings before interest, taxation, depreciation, and amortization (EBITDA) also saw a sharp decline, falling 34.8 percent to JPY19.56 billion.
The downturn in performance can be attributed to a decrease in the number of VIP guests, largely due to a slowdown in the junket business that has adversely affected the overall market conditions for casinos in the Philippines. While there has been a steady increase in sales from the mass market and gaming machine categories since the pre-pandemic peak in 2019, the fiscal year 2024 results indicate a drop from the previous year, when demand had rebounded significantly post-pandemic.
Share Transfer and Future Plans
In addition to its operational updates, Universal Entertainment announced a delay in the transfer of shares of Asiabest Group International Inc., a Philippine-listed company. This transfer, which involves the acquisition of shares by PremiumLands Corp for PHP510.4 million (US$8.8 million), is part of a broader strategy to list Tiger Resort, Leisure and Entertainment Inc. (TRLEI) on the Philippine Stock Exchange. The delay is attributed to the time required for a tender offer for the remaining outstanding common stock of Asiabest, highlighting the complexities involved in corporate restructuring and compliance with regulatory requirements.
Conclusion
As Universal Entertainment Corp navigates the challenges and opportunities within the gaming industry, its focus on expanding online gaming offerings and enhancing visitor experiences at Okada Manila positions it for potential growth. The company’s strategic initiatives, coupled with a commitment to improving marketing capabilities and attracting a diverse clientele, will be crucial as it seeks to rebound from recent financial setbacks and solidify its presence in the competitive Philippine gaming market.