The Philippines’ Gross Gaming Revenue (GGR) will increase to at least $10 billion in the full year 2027, according to estimates from GCG Gaming Advisory Services.
In the latest update on the Philippines gaming industry, the director at GCG Gaming Advisory Services, Scott Feeney, notes that positive signs for this growth are the increasing South Korean visitation and the slowly increasing number of Chinese. ‘We expect the Chinese visitation to increase significantly in 2024,’ it mentions.
According to statistical data, the Philippines received nearly 1.6 million South Koreans in 2019 and now 1.2 million from January to October this year. The number of Chinese visitors’ arrivals was 1.3 million in 2019, and this year only received 232,158 in a ten-month period.
In general, Feeney points out that ‘the Philippines enjoys a strong local market and a strong expat community (South Korea, China, Taiwan, Japan, USA). Strong regulations, the introduction of PIGO, and new airports in Cebu and Clark, all indicate that the Philippines will be competing with Singapore for the region’s second position behind Macau.’
Regarding 2023, Feeney estimates that the Philippines should reach an estimated GGR range of $5 to $5.2 billion, exceeding 2019 by at least 5 percent.
The Philippines’ GGR in 4Q23 is expected to exceed the previous record of $1.26 billion, as its 3Q GGR comes in at $1.24 billion. The GGR, since the $1.19 billion in 3Q22, has had very little growth in that 12-month period.
‘The record GGR of $1.26 billion in 4Q19 is most likely to be exceeded in 4Q23 this year when we expect to see increased growth in the South Koreans’ visitation and the gradual return of the Chinese. While the Philippines, in general, has been flat, Clark is growing steadily, and the GGR is now 19 percent of Entertainment City compared to 7 percent in 2019.’
Manila:
Year on year, Entertainment City‘s GGR saw a 10 percent increase. Of concern is that 3Q23 GGR was 5.7 percent lower than 1Q23. ‘We attribute this to the market being predominantly local and the lack of Chinese junket play. In the last 12 months, GGR was $3.18 billion, almost equal to the $3.23 billion in the full year 2019.
For 2023, the consultancy firm estimates Entertainment City’s GGR to be in the $3.2 to $3.4 billion range, equal to 2019. The proposed 1Q25 opening of Westside City should see more players overall, as the property is conveniently located quite centrally to COD, Solaire, and Okada. Overall, Manila has been well below 2023 expectations.
Clark:
‘Clark is really the growth story in the Philippines,’ Feeney notes. In 2019, Clark generated $235.1 million GGR. In 3Q23, Clark achieved $160.4 million alone. The GGR this year is $450.6 million, well on the way to approx. $640 million.
‘Hann, D’Heights, and Royce lead the pack, whilst Midori, Casino Plus, and Fontana continue to struggle against the influx of high-quality properties. Capital Casino, operated by PAGCOR, brings up the rear. Other projects are in the early planning stages, while Royce continues to bring its new facilities online.’
Cebu:
PAGCOR’s update did not include the GGR for Cebu’s NuStar Resort and Casino. However, the analysis notes the GGR for 3Q23 to be in the range of $20 to $30 million, and 2023 full-year GGR to be in the range of $40 to $50 million. A poker room and additional Junkets are adding to the growth. 2024 should see exponential growth.
