Philippines sees record gambling revenue, braces for stiff competition

Shin Hwa World

22/01/2019 08:53

By Neil Jerome Morales
    MANILA, Jan 22 (Reuters) - The Philippines is banking on a
steady stream of foreign high rollers to drive gambling revenue
to a record this year even as it braces for greater competition
from neighbours who want to cash in on the casino boom, the head
of the state gaming regulator said on Tuesday.
    Gross gaming revenue of the casino industry, which includes
the local units of Macau's Melco Resorts & Entertainment Ltd
 MLCO.O  and Japan's Universal Entertainment Corp  6425.T , is
expected to reach 217 billion pesos ($4.1 billion) this year, up
8.5 percent from a year earlier, Andrea Domingo, chairman,
Philippine Amusement and Gaming Corp (Pagcor), told Reuters.
    "All the integrated casino resorts are doing very well,"
Domingo added. Gross gaming revenue jumped 13 percent to a
record of roughly 200 billion pesos in 2018.
    The Philippines is one of Asia's fastest-growing gambling
markets and its integrated casino-resorts have helped create
jobs and generate tax and tourism revenue. It also benefits from
bans on gambling in many Southeast Asia nations.
    Domingo said she would not rest on her laurels given that
other countries in the region now want to get a piece of the
gambling pie.
    Japan has approved the development of megacasinos, while
Cambodia and Vietnam have welcomed investment in the gambling
sector.
    Domingo said she plans to meet Philippine President Rodrigo
Duterte, who is opposed to gambling, and update him on threats
faced by the gambling industry and socio-civic projects funded
by the casino sector.
    The firebrand leader lashed out at the casino business last
year, saying there would be no new casinos set up during his
presidency.  urn:newsml:reuters.com:*:nL4N1UZ3VX
    Last year, Duterte's government shelved Landing
International Development Ltd's  0582.HK  $1.5 billion
integrated casino project in Manila and blocked the plan of
Macau's Galaxy Entertainment Group  0027.HK  to build a $500
million integrated casino-resort on a holiday island in April.
    "The operators are threatened (by the growing competition).
However, if you have critical mass (plenty of options) and a
safe environment, gamblers will still be there," Domingo
explained.
    There were nine private casino firms in the Philippines
operating 1,580 gaming tables and 9,895 electronic gaming
machines, according to government data. Pagcor also operates
several casinos totalling 470 tables and 9,679 gaming machines.
 
    ($1 = 52.9350 Philippine pesos)

 (Reporting by Neil Jerome Morales, Editing by Sherry
Jacob-Phillips)
 ((neiljerome.morales@thomsonreuters.com; +632 8418914; Reuters
Messaging: neiljerome.morales.thomsonreuters.com@reuters.net))