Okada Manila experiences continued revenue decline in second quarter

The renowned Okada Manila resort in the Philippines continues to struggle with declining revenue. Latest figures show total revenue in the second quarter of 2026 fell by 13 percent to just under PHP7.0 billion. This marks a continuation of the negative trend already evident in the previous year.

The persistent declines in this major gaming hub are causing concern within the industry. It appears that complex market conditions and intensified competition are taking their toll.

Numbers and facts

In the first quarter of the fiscal year, Okada Manila's Gross Gaming Revenue (GGR) already declined by 17.2 percent year-on-year. Operator Universal Entertainment reported a GGR of PHP6.47 billion (approximately US$108 million) for the three months ending March 31. Adjusted segment EBITDA even plunged by 53.3 percent to PHP830 million (around US$13.9 million).

The decline affected all areas of the gaming business. The VIP sector saw a 19 percent drop. Mass tables experienced a 24.2 percent decrease, and gaming machines recorded 8.9 percent less revenue. Interestingly, visitor traffic remained broadly stable compared to the previous year, suggesting that the problem was not the number of guests but their willingness to spend. The average win rate for VIP games fell from 3.3 percent to 2.5 percent. Revenue from non-gaming services, which includes hotel and ancillary income, remained almost unchanged at PHP944 million (around US$15.8 million). In the fourth quarter of 2025, GGR was already PHP5.93 billion (US$99.7 million), a decrease of 34 percent. The entire fiscal year 2025 concluded with Okada Manila reporting a GGR of PHP27.81 billion, a 20.1 percent decline compared to the previous year.

Background

The causes of the ongoing decline are manifold. Universal Entertainment had already pointed to an 'ongoing correction' in the market back in February. The increasing competition in the Philippine gaming market also plays a role. A crucial factor appears to be the suspension of e-visas for Chinese citizens. In August 2023, the government launched such a program, but suspended it months later due to an influx of illegal online gaming workers. Although the e-visa program was reinstated in November, it will take time to rebuild lost trust and visitor numbers.

Tourism Secretary Christina Frasco commented on this last autumn: > "As we can see in the results of any marketing campaign, it takes at least six months before you can see actual conversion." - Christina Frasco, Tourism Secretary

Abacus Securities Corp had already predicted in 2025 that 'anaemic' visitation from China and Korea would weigh on the VIP volumes of all integrated resorts. A leadership change at Okada Manila, with Nobuki Sato succeeding long-time president Byron Yip, also indicates the need for strategic reorientations.

Why it matters for German players

German players are not directly affected by the revenue declines of a Philippine resort like Okada Manila, as regulation in Germany operates entirely differently. However, such international developments show how sensitive the gambling market can be to political decisions and tourist flows. For German players, GGL-licensed online casinos are the only safe and legal way to play online. These providers are subject to strict requirements of the Gambling State Treaty 2021 (GlüStV 2021), enforced by the Joint Gaming Authority of the Federal States (GGL).

These include a stake limit of one euro per spin on slot machines and a monthly deposit limit of 1,000 euros, controlled via the central monitoring system LUGAS. This system is designed to prevent individuals at risk of gambling addiction from accessing multiple providers simultaneously. While Manila focuses on VIP guests from Asia, the German gambling market's emphasis is clearly on player protection and channeling play into the legal market. Illegal providers, often with licenses from Malta or Curaçao, do not offer such protection mechanisms and operate outside the German legal framework, often leaving players without legal recourse in case of problems. The GGL whitelist is the crucial indicator for safe and legal play here.

What it means for GGL-licensed casinos

Okada Manila's situation illustrates that even established players in the casino sector face challenges. For online casinos with a German GGL license, this means they must focus not only on legal frameworks but also on the attractiveness of their offerings within the given restrictions. Strict rules such as the stake limit and the deposit limit are essential for player protection but can pose a hurdle for providers in regaining players from the black market.

GGL casinos must find creative ways to entertain players within these limits while ensuring high standards of player protection. The market in Germany is highly regulated, with a clear focus on responsible gambling. This is a significant difference from markets where the emphasis is on attracting high rollers and VIP guests. While Manila's strategy aims to boost tourist numbers to increase revenue in the high-end segment, German providers must adopt a broader approach that safely accommodates and protects all types of players.