Gaming in the Philippines is growing faster than most other key jurisdictions both locally and globally, including Macau, Singapore and Las Vegas, with that trend expected to continue through 2019.
Analyzing the state of the Philippines market in a research note, investment bank Morgan Stanley estimates that the GGR of the nation’s integrated resorts – Solaire, Resorts World Manila, City of Dreams Manila and Okada manila – will grow another 15% to Php164 billion in 2019, having risen 30% in the 12 months to 31 December 2018.
It also predicts mass to be the driver, growing to Php95.8 billion compared with a 10% increase in VIP to Php68.12 billion.
However, the VIP segment estimate is notable for the fact that it comfortably outperforms growth rates for VIP in Macau and Singapore.
“We expect overseas expansion by Macau junkets (with favorable margins) and video streaming to continue to drive solid growth in the Philippines in 2019,” said analyst Praveen Choudhary, noting that VIP revenue in the Philippines surpassed Singapore for the first time in 2018. “We forecast VIP growth of 10% in 2019 (2018: 33%) versus our Macau VIP revenue estimate of -6% year-on-year.”