Maybank Securities Inc projects the local gaming industry in the Philippines to achieve “at least circa 15 percent” growth in gross gaming revenue (GGR) in 2024.
In a note on Tuesday, the institution expressed a positive view on the Philippine gaming sector, predicting this year’s GGR growth will be driven by the domestic mass and slots market. It also anticipates upside from the gradual pick-up in the VIP segment, led by South Korean punters.
Maybank foresees growth outside the Entertainment City of large-scale resorts in Manila, spurred by the opening of Solaire Resort North and a recent surge in e-gaming, according to analyst Raffy Mendoza. GGR in the Philippines, including non-casino operations, rose about 33 percent year-on-year in 2023, reaching PHP285.3 billion.
Maybank reported that the bulk of the growth came from land-based venues, which accounted for about 80 percent of the industry’s GGR last year, marking a 23-percent increase from 2022. The electronic-delivered games segment expanded the most in 2023, growing 3.2 times year-on-year to PHP33.2 billion, increasing its market share from 5 to 12 percent.
Combined mass tables and slot machines made up 64 percent of Entertainment City’s GGR in financial year 2023, showing the continued rise in domestic demand. We believe this trend in mass and slots GGR will continue driven by increasing private consumption
Raffy Mendoza, Maybank Securities Analyst
This should benefit industry players as hold rates for mass and slots are historically less volatile and provide higher margins compared to the VIP segment. Maybank expects the VIP contribution to industry GGR to remain subdued due to fewer Chinese visitors, as Chinese arrivals in the first three months of 2024 are only 24 percent of first-quarter 2019 levels.
“Nevertheless, we see Korean visitors leading the VIP segment’s gradual recovery, with Korean tourist arrivals already reaching 459,000 in the first three months of 2024, 88 percent of first-quarter 2019 levels,” said the institution.
Pagcor projects the nation’s gaming industry will generate PHP336.38 billion in gross gaming revenues this year, a 17.9-percent increase compared to 2023. 2024 poses to be another growth year for the gaming industry and we look forward to how the increase in gaming revenue will affect operators and players experience.