Inside Asian Gaming

IAG JUN 2022年6月 亞博匯 8 www.asgam.com The Philippines: Asia’s rising star EDITORIAL M acau has for the best part of two decades been recognized as the undisputed king of Asia when it comes to gaming. And, until recently, the “next big thing” was Japan – widely viewed as the great untapped market destined to move into second place on the regional IR map. But with Macau now firmly stuck in a COVID-19 rut and Japan having done all it can to throw its IR opportunity away, there is only one jurisdiction currently capturing the imagination of gaming operators and suppliers Asia-wide. The Philippines may still find itself a long way from producing the massive revenues enjoyed by Macau in its heyday (which peaked at US$45 billion in 2013) – 2019 Philippines GGR was US$4.3 billion – but it is without doubt Asia’s most exciting growth market in 2022. Talk to any Asia-facing gaming product supplier and they will inevitably point to the Philippines as the place to be in the coming years. Why is this the case? Putting aside the recent reopening of international borders following two years of COVID-enforced closures, there are three main reasons for this. One, the Philippines benefits from a regulatory regime that, to put it nicely, is “moderate” in its oversight of the industry and largely supportive of initiatives aimed at growing the gaming pie. Recent examples include introduction of the “PIGO” (Philippine Inland Gaming Operators) scheme allowing land- based operators to offer online gaming to members, liberalization of online sports betting and the decision to green-light casino development on Boracay in an effort to boost tourism revenues. The Philippines is also one of a handful of jurisdictions in Asia to allow proxy betting – the practice of having a third party on site placing bets on a player’s behalf. Two, infrastructure is continually improving. To say that Manila isn’t the easiest city in the world to travel around is an understatement, but there have been clear efforts to improve its attractiveness to tourists. Opened in 2016, the NAIA Expressway connecting the airport with Entertainment City – home to City of Dreams, Okada Manila and Solaire – has turned a long and frustrating journey through heavy traffic into a veritable walk (drive) in the park. Likewise, outgoing President Rodrigo Duterte’s flagship “Build, Build, Build” infrastructure program is midway through the process of constructing major new road and rail links between Manila and Clark to the north, most notable being the US$15 billion North- South Commuter Railway which will also link to Clark International Airport. Clark, a favorite gaming and golfing destination for South Koreans, is envisioned as becoming a national tourism hub, with its array of sparkling new casino resorts to be supported by four new airport terminals by 2025 – boosting its annual capacity from 4.2 million to 12.2 million.