WILMINGTON, Del., Sept 7 (Reuters) - A Delaware judge ruled on Thursday that an affiliate of Japan's Universal Entertainment Corp does not have to complete a SPAC merger deal with 26 Capital Acquisition Corp that related to the largest casino in the Philippines.

Vice Chancellor Travis Laster said the Universal Entertainment affiliate did not have to complete the 2021 merger agreement in part because 26 Capital Acquisition "engaged in conduct that should not be rewarded" by ordering the deal to close. Laster said 26 Capital could still seek damages, which he would address at a later date. (Reporting by Tom Hals in Wilmington, Delaware; additional reporting by Jonathan Stempel; Editing by Leslie Adler)