Philippine Gaming Revenues Expected to Surpass $5.9 Billion in 2021
Gross gaming revenues in the Philippines are set to exceed $5.9 billion this year, surpassing the pre-pandemic figure of $4.84 billion in 2019, according to a report by GCG Gaming Advisory Services Pty Ltd. This forecast includes revenues from non-casino bingo and electronic games parlors, as well as state-run casinos and commercial properties in various locations such as Entertainment City Manila, Clark, and Cebu.
The report highlights that Entertainment City venues are projected to contribute the largest share of gross gaming revenues this year, with estimates ranging from $3.6 billion to $4.0 billion. However, there has been a recent decline in revenues for Entertainment City, which the report attributes to the market being predominantly local and regular players potentially reaching their spending limits. The opening of a new casino hotel in the Westside City project in Entertainment City in 2024 is expected to attract more players, revitalizing the market.
The state-run Philippine Amusement and Gaming Corp.’s report showed that Entertainment City resorts accounted for approximately 76.8 percent of the industry’s gross gaming revenues in the second quarter of this year, amounting to P43.47 billion ($769.5 million). Although this figure represented a 4.3 percent decline compared to the previous quarter, it reflected a 17.5 percent increase compared to the same period last year.
In addition to Entertainment City, there are other thriving casino clusters in the Philippines. The Newport World Resorts near Manila International Airport stands out from other commercial resorts due to its wide array of hotel brands. The cluster of commercial casinos in the Clark Freeport Zone is also estimated to be a significant market, with a projected casino gross gaming revenue of $600 million to $700 million throughout 2023. Similarly, the commercial-casino market in Cebu, including NUSTAR Resort and Casino, is expected to generate between $70 million to $90 million in gross gaming revenues for 2023.
The consultancy firm, GCG Gaming Advisory, anticipates that the Philippine casino market has the potential to achieve $10 billion in annual gross gaming revenues by 2027. This projection exceeds the starting range of $8 billion previously estimated by PAGCOR chairman Alejandro Tengco.
The growth of the Philippine gaming industry is an encouraging sign for the country’s economy as it continues to recover from the global health crisis. With various casino clusters and investments on the horizon, the sector is poised for further expansion and revenue generation in the coming years.
In conclusion, the gaming industry in the Philippines is experiencing a surge in revenues, with expectations to surpass $5.9 billion this year. The report by GCG Gaming Advisory highlights the significant contribution of Entertainment City venues and the potential for growth in other casino clusters. The projected growth of the Philippine casino market bodes well for the country’s economy and signals a positive trajectory for the industry’s future.
