Japan’s Universal pulls out of partnership for Philippine casino project

A unit of Japan’s Universal Entertainment Corp. has withdrawn from a planned investment in a Philippine casino project, delivering a new setback to tycoon Dennis Uy’s efforts to secure a partner for his integrated resort.

Universal's Tiger Resort Leisure & Entertainment Inc. (TRLEI), the operator of Okada Manila casino, has terminated plans to acquire a majority stake in the companies involved in the Emerald Bay project in central Philippines, Uy’s PH Resorts Group Holdings Inc. said in a stock exchange filing on Tuesday.

Both parties declined to provide a reason for the withdrawal. Shares in PH Resorts plummeted by as much as 29% in Manila trading following the disclosure, Bloomberg reports.

This comes as another blow to Uy's casino venture. PH Resorts had previously explored potential deals with Philippine ports and casino billionaire Enrique Razon, as well as a local developer.

Uy has been trying to reduce debt after his aggressive, debt-backed expansion in various industries during the term of Rodrigo Duterte, whom he supported as a presidential candidate in 2016.

PH Resorts President Raymundo Martin Escalona, in a statement, said that they will engage with other companies that have expressed interest in the Emerald Bay project, located on the central island of Cebu.

“This development shall give PH Resorts the opportunity to engage with other parties which have already expressed their keen interest in the Emerald Bay Project, but have been unable to formalize due to the restrictions under the TRLEI deal,” Escalona said.

The first phase of Emerald Bay is likely to feature around 600 electronic gaming machines, 122 gaming tables, and a five-star hotel, as per PH Resorts’ 2023 annual report.