The gaming sector in the Philippines is becoming one of the most profitable markets in Asia, analysts report.
Philippines.- Filipino econmy is undergoing a major expansion and that has impacted the gaming sector. The industry in the Philippines is turning into one of the most profitable markets in the region, according to analysts at Union Gaming Group and Morgan Stanley.
The Manila Bulletin reported that, last Wednesday, manager director at Union Gaming Grant Govertsen explained at G2E Asia that “ inbound Chinese players as well as the nation’s strong economic expansion continue to drive the local gaming industry.”
When asked about the most interesting markets in the continent, he stated that “the Philippines is probably one that comes to mind,” and added: “The real exciting part there is the local story, the local economy, its going so well.”
Govertsen also noted that gross gaming revenues (GGR) are getting “better and better, and it’s not dependent on Chinese entirely.” In 2016, GGR grew 19 percent, in comparison to 2015, to reach P149.12 billion (nearly US$3 billion).
Philippine Amusement and Gaming Corporation (PAGCOR) chairwoman and CEO projects the industry to keep growing, between P155 billion (US$3.1 billion) to P160 billion (US$3.2 billion) in 2017.
Managing director at Morgan Stanley Praveen Choudhary also believes that the “Philippines looks like the market to look for” in the area. Choudhary said that the “gambling appetite in Asia is still humongous,” and explained: “As long as you can build casinos, integrated resorts, entertainment around that and good food, that’s an easy bargain. You can keep getting more and more out of it. I will not be surprised if I hear more success in the future.”
Fitch Ratings had already commented on the Philippine market in its “Eye in the Sky Series: Philippines” report and said that the country’s economic growth and the Kazuo Okada’s casino in Manila would boost its numbers. Fitch expects the sector to grow by “a high single-digit growth this year.”