Tighter pachinko regulation in Japan and growing costs in Okada Manila have weighed heavily in Japanese gambling operator Universal Entertainment Corp. in the fiscal year 2017.

In a disclosure to the Tokyo Stock Exchange on Wednesday, Universal announced that it incurred a JPY13.4 billion ($125.8 million) net loss for the nine months ending on December 31, 2017 while its net revenue was at ¥68.55 billion ($643 million).

Universal explained that the net loss was a result of tighter gambling regulations in Japan, particularly on pachinko parlors, as well as the ballooning costs of Okada Manila’s construction delays and the on-going litigation against Wynn Resorts.

The company reported that its Pachislot and Pachinko business posted net sales of JPY50.35 billion ($472.74 million) for the April-December 2017 period, while operating profit is at JPY9.34 billion ($87.73 million).