How Casino & Gambling Market Is Positioned in the Philippines?
Gambling in the Philippines has been present from the 16th century. Gambling has been legal in the Philippines since 1976, official announced by then President Ferdinand Marcos, creating the Philippine Amusement and Gaming Corporation (PAGCOR).
The casino and gambling industry of the country is quite vibrant with its respective ups and downs occurring occasionally currently the industry is growing at a CAGR of ~% during 2011-2015. In 2015-2016, the industry has experienced certain difficulties as major gambling operators posted a decrease in net profit for the first two quarters of the year.
The Philippines is slowly but steadily rising in the gaming industry establishing itself as the gaming capital in Southeast Asia. The growth can be attributed to Manila’s Entertainment City, which consists of first-class casinos and hotels. These hotels and casinos are a huge source of tourism, which brings in additional revenue for the country.
The casino industry in the Philippines has increased from USD ~ million in 2015 to USD ~ million in 2017. Growing number of Chinese tourists in the country has augmented the market the casino industry in the country. Chinese gamblers have contributed a share of ~% in 2016. Chinese tourists have increased from ~ thousand in 2014 to ~ thousand in 2016. Visa-free access for Chinese visitors and junket-based proxy betting has augmented the growth of the Chinese tourists in the country. A visa waiver entitles visitors to come to the Philippines and stay from 14 days to a maximum of 150 days in the country.
The government handles gambling through the Philippine Amusement and Gaming Corporation (PAGCOR) which aims to regulate and operate games of chance, and to generate government funds. The Philippines has more casinos than Macau, with twenty found in Metro Manila alone. Growing local economy of the Philippines has a positive impact on the casino and gambling industry. The casino industry in the country is not entirely dependent on the international tourists.
How Casinos & Electronic Sites are performing in the Philippines Market?
Casinos have majorly contributed in the revenues of the industry with the share of ~% in 2017. Casino market has grown at a CAGR of ~% during 2012-2017.Growing number of casinos in the country and expansion of junket, non-junket and mass services have driven the revenues of the casino industry in the country. Growth in the Chinese tourists and increasing revenues from the VIP segment has further supported the growth of the casino industry.
The casinos are part of much larger hotel, leisure and retail developments made by leading domestic and overseas industrialists and totaling billions of dollars.
The revenues from electronic gaming has increased from USD ~ million in 2012 to USD ~ million in 2017, growing at a CAGR of ~% during the period. Electronic gaming has been gaining popularity in last few years in the country. With the growing internet penetration in the country, the targeted audience for this segment is increasing. The internet users in the country have grown from ~ thousand in 2012 to ~ thousand in 2017. Electronic games in the gambling industry includes online poker, online sports betting, Bingo, online lotteries and other online gambling games.
Which service is preferred more in PAGCOR Casinos Junket, Non Junket or EGMS in Philippines?
EGMS have contributed a share of ~% in the revenues of PAGCOR in 2016. Electronic gaming machine is a modern video gaming machine used in casinos and arcades. These machines are electronically operated. Poker is the most popular EGM played in the Philippines. Poker games and slot games are far more advanced than other games because they use digital computer technology to power the games.
Non junket is the second largest contributor in the revenues of the industry with the share of ~% in the revenues in 2016. Non Junket segment is mass gaming without any perks or entry fee or limitation to the amount of money gambled during a particular period.
Junket services have contributed a share of ~% in the revenues of the industry in 2016. Junkets are complimentary or paid trips to casinos, offered to certain VIP players or groups of VIPs. Gaming tables in the government casinos can be classified into high roller, non high roller tables and junket tables. The maximum share of junket tables to total gaming is around ~% in 2016.
How are Government & Licensed Casinos Performing?
Licensed casinos have dominated the market of casino industry with the share of ~% in terms of revenues in 2016. Resort world manila, City of dreams Manila and Bloom solaire are the largest licensed casinos in the country.
The licensed casinos in the country are governed by PAGCOR. Local Population as well as international tourists is the customers of licensed casinos. Government casino has contributed a share of 20.3% in the revenues of the industry in 2016. The share has declined from ~% in 2014 to 20.3% in 2016 owing to the opening of new private casinos in the country. The state run casino PAGCOR has the authority to give further licenses to casinos, traditional and electronic bingo parlors, electronic gaming outlets, sports betting kiosks and poker rooms to private entities (licensed casinos).
How Tourist from Different Countries Driving Gambling Growth?
Local Filipinos have contributed majorly in the revenues of the casino industry in 2017. Increasing number of UHNWIs in the country has triggered the revenues of the industry by local customers. Local customers majorly consist of slot and mass category. Chinese/Macau/Hong Kong has contributed a share of ~% in the revenues in 2016.
Growing number of Chinese tourists in the country has surged the revenues from Chinese gamblers. Improving tie ups between china and the Philippines has led to increasing number of Chinese tourists in the country.
Which Class Category (VIP, Slots, Mass and ETG) is Peforming Well?
The VIP category is the dominating category in the segment contributing ~% in terms of revenue in 2017. Slot is the second largest contributor in the revenues of the casinos in 2017. Growing number of slot tables in government and licensed casinos in the country has contributed in the growth of the revenues from slot segment. The mass category has added a share of ~% in the revenues of the casinos in 2016.
How the Competition is prevailing in Casino Market
The Philippines gaming sector has become one of the most lucrative markets in Asia amid the country’s robust economic expansion. The casino industry in the Philippines is highly concentrated with the presence of few leading players in the market. The major players in the market are PAGCOR, city of dreams manila, Bloom Solaire and Resorts world manila. Most casinos in the Philippines are integrated casinos that had a hotel and a resort integrated with the casino. Casinos provide services such as VIP and non VIP gambling to its customers.
Competition in the mass gambling services is also very high as casinos offer beverages free snacks and cigarettes as a part of the package. The industry is highly competitive and various innovations in services happen at regular intervals.
Number of tables, EGMS, International & local customers are the important competition parameters in the Philippines casino and gambling industry. Other competition parameter among the players in the industry includes Entry Fees, Location of the Casino, Services Offered and minimum and maximum betting price.
What is the Future Outlook for Casino & Gambling Market in the Philippines?
The gross gaming revenues for casino and gambling industry are anticipated to increase at a CAGR of ~%during the period 2018-2022, with revenues been reported at USD ~Million by 2022.
By 2020, the gross gaming revenues for casino and gambling is likely to be evaluated at USD ~ million. One of the major trends which is likely to support the growth of casino and gambling industry is the integration of casino with the hospitality. Casinos in Philippines can be seen as a source of luxurious entertainment for people with high disposable income and time. With casinos’ inability to attract a younger audience, they are looking at alternate methods to increase their customer base and business. One such method is closer association with the hospitality sector.
Philippine gaming sector’s future success is actually dependent on its ability to attract high-rolling Chinese visitors as they are the ones who spend the most and these casino in Philippines attract highest proportion of audience from Chinese countries.
Companies Cited in the Report
List of Companies Companies Covered in the Report
Resorts World Manila
City of Dreams Manila
AB Leisure Exponents
Mega sports world, Okada Manila Major Players in Casino Market
Manila Jockey Club
Philippines Racing Club
Premium Leisure Corporation
Casino Filipino Binondo
Casino Filipino Citystate
Casino Filipino Malabon
Master Poker Sports Club
Key Topics Covered in the Report:
Philippines casino industry
Philippines gambling industry
Philippines Mobile gambling market
Online gambling market Philippines
Number of gaming tables in Philippines
Licensed casinos in Philippines
Government casinos in Philippines
Online gambling sites in the Philippines
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Ankur Gupta, Head Marketing & Communications