Okada Manila Could Be Player in New York City Casino Competition

Okada Manila Could Be Player in New York City Casino Competition.

Costfoto / NurPhoto / Getty Images

Key Takeaways

When it wraps up its merger with a US-based special purpose acquisition company (SPAC), Okada Manila could enter the competition for a New York City casino license.

Okada ManilaThe Okada Manila integrated resort in the Philippines. The operator is rumored to be interested in a New York casino license. (Image: Forbes)

Sportico initially reported the rumor. In a deal valued at $2.6 billion, Jason Ader’s 26 Capital (NASDAQ:ADER) is acquiring Okada Manila. When that transaction closes, the gaming stock under the ticker “UERI” upon closure of the transaction.

That merger was originally slated to close last month. However, that was delayed after billionaire Kazuo Okada attempted to physically seize control of the Philippines integrated resort bearing his name. He claims he was unjustly ousted from the board in 2017. He is now looking to force the gaming company to adhere to a recent ruling by the Philippines Supreme Court, which ordered that the operator’s board be returned to its 2017 composition.

26 Capital with the merger. Universal Entertainment, the Japanese pachinko giant that’s the parent company of Okada Manila, is rolling in 100% of the equity in the casino operator, and Ader’s 26 Capital is providing up to $275 million in cash to the business.

How Okada Manila Fits in New York Scene

New York’s 2023 budget features a process to award downstate casino licenses. The New York metro area’s two gaming venues Resorts World New York City in Queens and MGM’s Empire City Casino in Yonkers — are currently limited to offering slots.

However, it’s expected that those properties will procure rights to convert to full, traditional casinos. That will  to vie for a single gaming permit.

Should Okada Manila pursue that opportunity, it will be entering the ring already rumored to be full of gaming industry heavyweights. Those include Hard Rock International, Las Vegas Sands and Wynn Resorts. Those are deep-pocketed companies with the brand recognition and reputations that are likely alluring to New York developers and policymakers.

Previously, Bally’s was rumored to be among the operators interested in a New York casino. Still, it’s unclear if that company’s in Chicago could temper its Big Apple ambitions.

Okada Manila Eyes Expansion

If Okada Manila were to list on the Nasdaq today, it’d be the smallest US-listed gaming company by number of properties, with just one item. Monarch Casino Resort (NASDAQ:MCRI) currently holds that distinction, as it owns two gaming venues.

Looking further out, it’s unlikely the standalone version of Okada Manila will remain a one-casino- company on a permanent basis. Last October, Ader said the operator could consider opportunities in regulated casino industry takes shape.

Owing to its established footprint in the Asia-Pacific region, Okada Manila could also be a player in new and expanding markets there. But it hasn’t commented to that effect beyond the aforementioned interest in Japan.

Article Sources
Congressman Demands DOJ Opinion on Sports Betting, Calls for Federal Regulation editorial policy.
  1. MGM Springfield and Mohegan Sun Turf War Continues, Properties Argue Over Being First

Compare Accounts
×
Player Sues Betfred Over £1.7 Million Online Jackpot Win That Wasn’t
Provider
Name
Description
Eighty Percent of UK Gambling Marketing Spend Now Goes Online  Canadian Sports Betting Laws ‘Mind Boggling,’ in Need of Change Say Politicians and Union Leaders  Mysteriously Missing Landing International Chairman Resurfaces After Three Months Incommunicado  NEW YEAR, NEW STUFF: What to Expect from Vegas in 2025  Crown Resorts Shares Plunge 20 Percent in Three Months, Packer Takes $824 Million Hit  MGM Springfield and Mohegan Sun Turf War Continues, Properties Argue Over Being First  Eldorado Resorts Reaches 20-Year Deal With The Stars Group for Online Sports Betting, Gambling  Russia Sues Google For Ignoring Web Censorship Demands  Las Vegas Officials Say 300K Visitors Expected for Thanksgiving Weekend  Station Casinos Appeals Order Requiring Green Valley Ranch to Negotiate With Culinary Union