PGasia | Potential for New Casino Licenses in the Philippines
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The chairman of the Philippine Amusement and Gaming Corp (Pagcor), Alejandro Tengco, announced that the agency might approve new licenses for integrated resorts (IRs) containing casinos within the next four years. Tengco made these remarks during an interview with GGRAsia at the Global Gaming Expo (G2E) Asia in Macau, emphasizing that these new casino properties would boost the industry’s gross gaming revenues and establish the Philippines as a leading gambling destination in Asia.
New Casino Projects in the Pipeline
Bloomberry Resorts Corp recently opened its US$1.0-billion Solaire Resort North in Quezon City. In addition, six other gaming projects are underway, including a casino resort by Bloomberry in Paniman, Cavite, and a casino hotel at Westside City in Manila’s Entertainment City. Other projects include developments in Clark Freeport Zone, Pampanga province, a casino resort in Mactan, Cebu, and two gaming-related complexes in Boracay.
Andrew Tan’s Global Estate Resorts Inc. is developing one Boracay project, and the second will be a 65-35 joint venture between Pagcor and an unnamed operator. Tengco mentioned that Suntrust Resort Holdings Inc, a unit of LET Group Holdings Ltd, is developing the Westside City casino hotel using Travellers International’s license. The casino is expected to open in the first quarter of 2025.
Growth in the Philippine Gaming Sector
The Philippine gaming sector, including non-casino operations, generated PHP81.70 billion (US$1.42 billion) in gross gaming revenue (GGR) in the first quarter of 2024, marking an 18.5 percent increase from the previous year. The e-Games segment alone contributed PHP22.5 billion in GGR, a significant rise from PHP3.5 billion in the first quarter of 2023. Despite this, licensed commercial casinos remain the largest contributors, with PHP49.7 billion in GGR, though this figure decreased by 8.2 percent year-on-year.
Tengco noted that while land-based operations have plateaued, the electronic gaming sector’s growth has been unprecedented, potentially offsetting declines in physical casinos. He attributed this to the convenience of online gaming, which allows players to enjoy casino games from home.
Challenges and Future Prospects
A major challenge for land-based operations is the decline in Chinese tourists, primarily due to diplomatic relations. Tengco expressed hope that normalizing relations between the Philippines and China could lead to an influx of Chinese tourists, boosting revenues for land-based operations, including Casino Filipino venues.
In the first five months of 2024, the Philippines welcomed over 2.4 million foreign tourists, a 16.3 percent increase from the previous year, with 168,628 visitors from China. Despite this, the Philippine authorities are also exploring markets beyond China to sustain growth.
Positive Outlook for 2024
The Philippine gaming industry recorded a GGR of PHP285.27 billion for the full year 2023, with Pagcor expecting to reach PHP336.38 billion in 2024. The strong first-quarter results suggest that the industry is on track to exceed these targets, reflecting a robust and growing market.
Summary:
The head of Pagcor, Alejandro Tengco, has hinted at the possibility of new casino licenses in the Philippines within the next four years. With several new projects in the pipeline, including Bloomberry Resorts’ Solaire Resort North and developments in Boracay, the Philippine gaming sector is poised for growth. The industry saw a significant increase in GGR in the first quarter of 2024, driven by the booming e-Games segment. Despite challenges like the decline in Chinese tourists, the outlook for 2024 remains positive. Visit PGasia for more insights on gaming opportunities and tips.
