The Philippines casino industry will record gross gaming revenues of US$10 billion by 2027, essentially doubling its GGR in the space of five years, according to estimates from Asia-Pacific consultancy firm GCG Gaming Advisory Services.
The long-term prediction formed part of the company’s 3Q22 market update for the Philippines, which also estimates the nation’s GGR will return to 2019 levels of around US$5 billion by next year – up from between US$3.9 billion and US$4.0 billion in 2022.
“The Philippines enjoys a strong locals market, a strong expat community (Korean, Chinese, Taiwan, Japan) and fully open international borders,” GCG said.
“Strong regulations, introduction of PIGO and new airports in Cebu and Clark all indicate that the Philippines will be competing with Singapore for the top GGR position over the next few years.
“We expect the Philippines to increase to an annual GGR of US$10 billion in full year 2027.”
As previously reported by Inside Asian Gaming, PAGCOR figures show GGR from licensed casinos reached Php117.0 billion (US$2.04 billion) through the first nine months of 2022, including Php44.8 billion (US$781 million) in Q3. Industry wide GGR, which also includes PAGCOR casinos and “other licensed” casinos, reached US$1.04 in Q3, the highest quarterly figure since 4Q19 when GGR reached US$1.31 billion.
While PAGCOR did not distinguish between GGR generated in Manila’s Entertainment City and other areas like Clark and Cebu for the September quarter, GCG estimates suggest Cebu’s first integrated resort, NUSTAR Resort and casino, generated gross gaming revenue of around US$20 million in its first quarter of operations. The property held its soft opening in May with a full opening tentatively planned for the second half of 2023. Its main gaming floor is currently operational although most VIP areas remain under construction.
GCG added that, “We can take a best estimate that the Clark casinos contributed approximately US$110 million [in Q3], NUSTAR in Cebu US$20 million and the two Fiesta casinos US$8 million.”
The Philippines will welcome a number of new additions to its integrated resort inventory in the coming years, with NUSTAR’s full opening to be accompanied by a second Cebu IR called The Emerald Bay, Bloomberry Resorts Corp opening Solaire North in Quezon City next year followed by a third Solaire-branded property in Cavite, and Manila’s Entertainment City precinct to welcome the sizeable Westside City project by 2025.
There is also ongoing growth in Clark, where the recent Hann Casino Resort expansion will be matched by a similar expansion project at nearby Royce in the coming months.
