Philippines GGR to grow at least 15% this year, analysts say

Philippines GGR to grow at least 15% this year, analysts say

Maybank Securities says growth will be mainly driven by the domestic mass and slots market.

The Philippines.- Maybank Securities has forecast a 15 per cent increase in gross gaming revenue (GGR) this year. Analysts attributed the GGR growth to the domestic mass and slots market. They anticipate growth outside of Entertainment City resorts driven by the Solaire Resort North opening and a rise in e-gaming. 

Last year, GGR in the Philippines, including non-casino operations, was up 33 per cent year-on-year to PHP285bn (US$5.1bn). Casinos remained the primary revenue contributors, accounting for PHP207.5bn (US$3.7bn), followed by the electronic games sector with PHP58.16bn (US$1.04bn). Commercial casinos licensed by PAGCOR contributed PHP19.62bn (US$352m) to the overall GGR.

Entertainment City’s GGR in the financial year 2023 was made up of 64 per cent combined mass tables and slot machines, indicating a continued rise in domestic demand. Maybank said it expects this trend in mass and slots GGR to continue, driven by an increase in private consumption, which should prove beneficial for operators as hold rates for mass and slots are historically less volatile and provide higher margins compared to the VIP segment. 

Analysts also stated they expect the VIP contribution to industry GGR to remain down as Chinese arrivals remain down against 2019. Korean visitors are expected to lead the VIP segment’s gradual recovery, with arrivals already reaching 459,000 in the first three months of 2024, 88 per cent of first-quarter 2019 levels. 

See also: PAGCOR reports net income of US$437.9m for Q1

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