A Php3,000 (US$60) entry fee imposed upon locals wishing to gamble at Philippine casinos would likely hurt mass market revenue, according to Morgan Stanley.
In a Monday note, analysts Alex Poon and Praveen Choudhary pointed to the fact that the Philippines has lower spending per capita and more entertainment-oriented gamblers compared to other regions.
It follows The House of Representatives filing a bill seeking to impose the entry fee in all casinos and similar gaming establishments in the country following the attack on Resorts World Manila on 2 June.
Morgan Stanley suggests the impact on mass could be significant because, “Filipino gamblers view gambling more as entertainment compared to Chinese gamblers in Macau … the Philippines’ GDP per capita is 60% lower than China’s and the entry fee may deter grind mass and family customers.”
It also observes that mass and slot revenue per visitor over the last few quarters has averaged around Php4,000 (around US$80), meaning the entry fee would comprise 75% of the average spend and therefore possibly deter any further spend on gaming.
Despite the threat, Morgan Stanley believes there is no need for Philippines operators to panic just yet with a similar bill proposed in 2014 having made no progress since. Any such levy would likely have little impact on VIP and Premium Mass.
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