Philippines to surpass Singapore by 2019

Philippines is set to emerge as the largest entertainment market in ASEAN - surpassing that of Singapore due to favorable policies and infrastructure development, says Morgan Stanley.

“...the Philippines has favorable policies (allowance of junkets, proxy betting and so on) and strong tourist arrivals to drive foreigners' revenue. Local spending is backed by a strong local economy,” noted the brokerage on Monday.

Furthermore, with Okada Manila set to add US$1.2 billion of GGR to the market by 2019, the overall Philippines market size is expected to hit US$5 billion in 2020, surpassing that of Singapore, says the brokerage.

Risks however, relate to an uncertain regulatory environment, the enforcement of tightening measures similar to other gaming markets, and muted EBITDA growth in 17H2 and 2018 as Okada Manila takes share.

Morgan Stanley says it sees Bloomberry as its top pick, “attributable to a stronger balance sheet and cash flows with potential dividends, and a larger landbank for future expansion.”

More news from this jurisdiction

PhilippinesFriday, Jun 23, 2017

Gaming regulator Philippine Gaming and Amusement Corp. (Pagcor) has indicated that it intends to lift the suspension on Resorts World Manila’s gaming license soon.

PhilippinesMonday, Jun 19, 2017

Securities and Exchange Commission chairperson Teresita Herbosa says the current P5 million (US$100,000) threshold for casinos should be lowered to cover more suspicious transactions.

PhilippinesMonday, Jun 19, 2017

City of Dreams Manila operator Melco Resorts and Entertainment (Philippines) Corp. says it has beefed up security following the June 2 casino attack at Resorts World Manila.

PhilippinesTuesday, Jun 13, 2017

The operator of Resorts World Manila on Tuesday said it will exert all efforts to “preserve and defend” the company’s provisional license, following the Pagcor announcement last Friday.

PhilippinesTuesday, Jun 13, 2017

A proposed conversion of TSCLK Complex convertible bonds, owned by NagaCorp CEO Dr. Chen Lip Keong, would take his ownership to above 50 percent, up from his current 39 percent, said Union Gaming in a note on Monday.

PhilippinesMonday, Jun 12, 2017

Junket operator SunCity Group has drawn the attention of the Philippine Amusement and Gaming Corporation (Pagcor) after it took over the casino at the Sofitel Philippine Plaza without permission.

PhilippinesSunday, Jun 11, 2017

Hong Kong listed Landing International Development Limited says it is no longer pursuing the potential acquisition of a company engaged in gaming business in the Philippines.