One of the most popular recreational sports in the Philippines, gambling is enjoyed by tourists and locals alike. The casino gaming market in the Philippines is the eighth largest in the world and is well known not only for gambling, but also for extravagance and world-class hospitality. In 2015, the value of the market stood at $2.44 billion. According to analysts at Technavio, the market will reach approximately $4 billion by 2020, growing at a CAGR of more than 9%.
The casino gaming market in the Philippines is divided into three segments:
- VIP
- Slot machines
- Mass
VIP customers play on credit and the profit/loss transactions are usually taken care of by a third-party. In 2015, the VIP customer segment accounted for 50% of the casino gaming market revenue. The slot machines segment accounted for 26%, and the mass segment, where individuals play at the table and get their cash converted into chips, accounted for 24%.
When it comes to the top casino games, poker is the most popular, followed by blackjack and the slot machines. Roulette and craps are both quite popular as well.
Key market drivers
#1. Change in player demographics
Today’s casinos attract more than just men between the ages of 25 and 40; they also attract women and the elderly. This change in demographics reflects a change in the way in which casinos are perceived. Also, because casinos are now being regulated by government, more people feel encouraged to participate.
#2. Rise in the value of minimum bets
An increased number of individuals winning VIP tables has led to greater minimum bet values. In 2014, the minimum bet on a VIP table was $350. By 2016, the value rose to $500. This has in turn resulted in the increased value of the casino market.
#3. Boost in VIP revenue
As previously mentioned, a major share of the casino market revenue comes from VIP tables. Recently, the number of VIP tables has increased, as the Philippines aims to provide the same luxuries that are available in Australian and South Korean casinos.
#4. Improved transportation
Though it might not seem directly related, improvement in transportation has also helped to boost casino revenues. The Philippines’ capital city and casino hub, Manila, experienced an increase in casino visitors shortly after airway and roadway connectivity was improved.
In addition to the key drivers mentioned, there has been a conscious effort on the part of the government to ease the procedure of issuing gambling licenses for new casinos in cities other than Manila. Also, there is a movement to make casinos more appealing to a wider range of socio-economic classes by integrating them with the hospitality sector (i.e. major hotels), thus improving accessibility.
Some of the leading vendors in the casino gaming market in the Philippines are Philippines Amusement and Gaming Corporation (PAGCOR), Resorts World Manila (RWM), City of Dreams Manila (CODM), and Solaire (BLOOM).
View the 2016-2020 Casino Gaming Market in the Philippines Report
