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

PhilippinesSunday, Oct 22, 2017

The Philippines casino industry saw its gaming revenue rise 6.5 percent year-on-year in the second quarter of 2017, reaching P39.1 billion (US$759 million).

PhilippinesSunday, Oct 22, 2017

Bloomberry chairman Enrique Razon Jr. says the company is pushing ahead with its planned hotel and casino development in Quezon City despite opposition from residents.

PhilippinesThursday, Oct 19, 2017

Five members of a casino loanshark syndicate were arrested by the Philippine National Police on Wednesday, facing charges of kidnapping and illegal detention, local media reports.

PhilippinesWednesday, Oct 18, 2017

The Quezon City government says they have not received any formal applications for the development of a casino in the city.

PhilippinesMonday, Oct 16, 2017

Tiger Resort, Leisure and Entertainment is in talks to acquire holding firm Bright Kindle Resources and Investments Inc (BKR) for the prospective backdoor listing of its Philippines integrated resort.

PhilippinesMonday, Oct 16, 2017

GGR and company EBITDA for three integrated resorts in Manila are expected to decline quarter-on-quarter in the 17Q3, according to analysts from Morgan Stanley.

PhilippinesMonday, Oct 09, 2017

The Philippine Charity Sweepstakes Office has vowed to clamp down on illegal gambling after discovering that it is losing almost a third of its revenue in its small-town lottery business to illegal operations.