Casino gaming in the Philippines: Key market research findings
- VIP segment accounts for majority share of the revenue
- Growing integration with the hospitality industry
- Key vendors – Philippines Amusement and Gaming Corporation (PAGCOR), Resorts World Manila (RWM), City of Dreams Manila (CODM), and Solaire (BLOOM)
Technavio’s market research analysts predict the casino gaming market in the Philippines to grow at a CGAR of almost 10% between 2016 and 2020. The boost in the VIP revenue is the primary driving force behind growth in the market. A substantial portion of the revenue generated by the gambling market in the Philippines is through the VIP customer segment. This segment is expected to witness increased growth and revenue with more VIP tables being added to the casinos in an attempt to match the luxuries provided by the casinos in South Korea and Australia. During 2015, the Philippines ranked 6th in the APAC with respect to revenue generated through casinos. The country was home to around 54 casinos and generated a revenue of more than $45 billion.
The new market research report from Technavio presents a breakdown and analysis of the casino gaming segments based on end-users.
“Integration with the hospitality sector is the latest trend in the casino gaming market in the Philippines. With casinos’ inability to attract a younger audience, they are experimenting with alternate methods to grow their customer base and business. Casinos are now attempting to integrate their businesses with major luxury hotels. Slot machines are being placed at restaurants, bars, and other places that attract a crowd, adding more value to the place. The reach of the games is expected to go up by a huge margin as small casinos become embedded in big hotels,” says Ujjwal P. Doshi, Lead Analyst, Media & Entertainment, Technavio Research.
The VIP customers accounted for more than 50% of the overall market share to dominate the casino gaming market in the Philippines. VIP tables are casino tables where customers play on credit rather than with pre-paid chips. The profit or loss transactions are usually carried out by a third-party junket. This segment of the market is expected to showcase steady growth during the forecast period and is likely to reach 52.78% by 2020.
The key vendors in the market include Philippines Amusement and Gaming Corporation (PAGCOR), Resorts World Manila (RWM), City of Dreams Manila (CODM), and Solaire (BLOOM). In this market, the level of competition will intensify during the forecast period as the existing vendors are competing among themselves to gain maximum market shares. New casinos are expected to open in the future since numerous junkets are setting up shop in the country. Furthermore, as the casinos in the region are trying to match the casinos at Australia, South Korea, and Vietnam in terms of features and affordability, the level of competition will increase significantly over the next few years.
A more detailed analysis is available in the Technavio report, Casino Gaming Market in the Philippines.
We can customize reports by other regions and specific segments upon request.
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