Southeast Asia’s gaming industry is expected to have a stronger second half of the year, with the traditional land-based casino model facing both opportunities and threats, according to a recent report by Morgan Stanley.
Over 40 ASEAN corporates participated in the bank’s 2025 Virtual ASEAN Conference held on May 29th–30th, with gaming companies taking center stage amid shifting trends and evolving business models.
In an overview of the conference, MS analysts stated that operators of land-based casinos across the ASEAN region are pinning their hopes on a stronger second half of the year, with new capacity coming online and existing projects nearing completion. However, a sudden spike in online gaming activity is casting a shadow over their outlook.
MS then proceeded to analyze three separate presentations by gaming companies: Singapore-based Genting Singapore (GENS), Philippines-based Bloomberry Resorts, and Digiplus.
GENS acknowledged a recent loss in market share, attributing it to long-running construction projects that rendered key assets – including 360 rooms at the Hard Rock Hotel – unusable. ‘We lost market share over the last few years due to ongoing construction,’ GENS stated, according to the report.
The company also struck a cautious tone on the future of the mass-market segment, citing rising costs and changing consumer behavior. ‘Grind mass will remain absent due to casinos becoming more expensive in the post-pandemic environment,’ GENS added. Still, the report noted ‘stable momentum in the mass segment’ and a deliberate pullback in the VIP market ‘due to increased provisions.’
While GENS may benefit from a more than 5 percent dividend yield offering valuation support, Morgan Stanley warned that ‘new management change could be disruptive in the near term.’
Investors are nonetheless eyeing upcoming attractions including the Oceanarium, Forum, and Laurus Hotel, all scheduled to come online in the second half of 2025.
Online gaming rises as key growth engine
In contrast to the uncertain outlook for brick-and-mortar casinos, online gaming is rapidly emerging as a major player in the region’s gambling ecosystem. Bloomberry Resorts sees its move into online gambling as a strategic pivot.
‘Online gaming is a way to reach lower-spending customers,’ MS noted, highlighting that land-based operations primarily target high rollers. Bloomberry does not foresee a near-term recovery in the VIP segment in Entertainment City, underscoring the importance of its digital pivot. It plans to invest PHP1–2 billion in its online gaming business.
However, Bloomberry also offered a reality check on the crowded and competitive nature of the digital space. ‘Only 3 to 4 of the 57 licensed online operators have gained significant traction,’ the report said.
One standout performer in the online gaming surge is Digiplus, an operator of online gaming platforms and bingo parlors in the Philippines, with the report highlighting the company’s explosive growth.
Digiplus reported first-quarter revenues of PHP23 billion ($410 million), a 69 percent year-on-year increase, with net profit hitting PHP4.2 billion ($75 million)—an 18 percent margin.
The company boasts 7.5 million active monthly users, each spending an average of PHP1,000 ($20). Its stock has soared over 100 percent year-to-date, compared to the flat performance of the broader Philippine index.
With approximately 60 to 70 million Filipino adults online, for MS, Digiplus appears well positioned to continue its rapid expansion in a market ripe for digital disruption.
