Philippine gaming sector shows strong growth, analysts say
Maybank maintains a positive view of the Philippine gaming sector.
The Philippines.- Maybank Securities has reported that it maintains a positive outlook on the Philippine gaming sector. It comes after gross gaming revenue in the first quarter of the year was up 80.9 per cent year-on-year and 5.8 per cent quarter-on-quarter to PHP59.26bn (US$1.06bn).
Casino resorts in Manila’s Entertainment City and commercial casinos in the Clark Freeport Zone are experiencing a significant rise in GGR, surpassing levels seen in the first quarter of 2019. Maybank analyst Miguel Sevidal said these are outpacing the growth of state-run casinos.
Mass tables and slot machines in Entertainment City generated PHP87.1bn in GGR in the financial year 2022, with PHP26.0bn recorded in the first quarter of 2023. These figures accounted for 62 per cent and 59 per cent of respective GGR totals.
Analysts emphasised the significance of domestic demand as the main driver of industry growth. The mass-market table play and slot segments benefitted from less volatility in GGR due to hold rate fluctuations, resulting in improved margins.
Additionally, the VIP segment presents further opportunities for growth, as first-quarter 2023 VIP GGR in Entertainment City recovered to 101 per cent of the levels seen in the first quarter of 2019. This recovery is attributed to Korean and Chinese customers.
