Philippines forecasts doubling casino revenue by 2028 amidst tourism boom

Content Team August 16, 2023

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Philippines forecasts doubling casino revenue by 2028 amidst tourism boom

The Philippines’ gambling industry is set to double its gross gaming revenue by 2028, as the country attracts more tourists such as wealthy Chinese gamblers, PAGCOR’s chief said on Wednesday.

Source of the prosperity

Chairman Alejandro Tengco on the front cover of the Asia issue of the SiGMA Magazine (July 2023) — *PAGCOR Chairman Alejandro Tengco, on the front cover of the July issue of the SiGMA Magazine* (2023)

At least six new casino facilities worth roughly around $3 billion are in the pipeline to boost the Southeast Asian nation’s freewheeling gaming industry ahead of competition from Japan, which has a sprawling casino set for construction, and Thailand, which is planning to legalise gambling.

The country’s gaming sector will likely post at least 10% annual growth in gross gaming revenue (GGR), which is projected to post a new record high this year and hit 450 billion to 500 billion pesos ($7.9 to $8.8 billion) in five years’ time, Philippine Amusement and Gaming Corp (PAGCOR) Chairman Alejandro Tengco told Reuters.

Total GGR, a key metric in the industry representing the amount players wager minus their winnings, hit a record 256 billion in 2019 and was poised for further growth until the coronavirus pandemic decimated the industry. GGR started recovering in 2021 and reached 214 billion in 2022.

“Currently, the strong performance is supported by a stable of local players,” Tengco remarked. “There is still an opportunity for the foreign market to increase further due to improving foreign travel guidelines.”

What do the Philippines need to look out for?

Nevertheless, potential long-term prospects could face challenges due to factors like escalated international conflicts, the proliferation of illicit gambling, and the spectre of an economic downturn, as highlighted by Tengco.

The vibrant gambling arena in the Philippines, which boasts a miniature version of the renowned Las Vegas gaming strip nestled in its capital, draws high-stakes players hailing from countries such as China, Japan, and South Korea. This magnetic attraction has prompted both domestic and foreign enterprises to establish integrated casino-resorts with billion-dollar investments.

Beyond the four expansive casinos already operational in the capital, Tengco anticipates the emergence of an additional six gaming establishments spanning the nation’s landscape. This array includes a substantial up to $2 billion casino-golf hybrid in Pampanga province, a $300 million endeavour by Bloomberry Resorts in Cavite province, and another $300 million project by Global-Estate Resorts on the coveted holiday haven of Boracay, as corroborated by PAGCOR data.

Even as impending casinos in Thailand and Japan cast shadows on the horizon, the Philippines is actively solidifying its reputation as the preferred gaming destination. The strategy involves the privatisation of state-owned casinos, the inception of fresh gaming ventures, and a series of policy reforms, Tengco elaborated.

Exploring new horizons: The SiGMA Balkans/CIS Summit

With a reputation as a worldwide hub for networking, SiGMA Group is directing its attention to the Balkans this September. The SIGMA Balkans/CIS Summit is poised to make its mark in Limassol, Cyprus.

Anticipate a plethora of networking prospects and cutting-edge insights during this eagerly awaited event. Over the course of three days in the vibrant city of Limassol, the summit will feature a dynamic line-up including panel discussions, enlightening keynote speeches, engaging start-up pitches, and much more.