Maybank Securities experts are optimistic about the future of the Philippine gaming industry, Inside Asian Gaming reported. According to Maybank analysts, the Philippines will see GGR grow by 15% a year over the medium term.
The growth, analysts Miguel Sevidal and Alexa Mae Carvajal will be delivered by the high domestic demand, which has already seen the local industry recover from the pandemic. The first quarter of the year, the experts said, saw demand for mass table games and slot machines skyrocket, with the verticals comprising 59% of the total GGR for the period.
In addition, Sevidal and Carvajal project a recovery of the VIP segment thanks to the rising interest of South Korean visitors. Koreans led the recovery of the VIP segment, which is an ongoing trend, the analysts pointed out. Through May, a whopping 552,000 South Korean tourists had hit the local market, Sevidal and Carvajal added.
Chinese Visitation Rates Are Still Low
Despite the positive projections, the Philippines still have a below-average GGR per capita when it comes to slots and mass table games, the analysts pointed out. However, the orientation towards mass and slots is likely to benefit the Philippines, since these verticals are less volatile than other gambling offerings. As a result, the revenue from these games will translate into stable GGR.
The positive outlook is reinforced by the arrival of many Korean tourists, which offset the lack of Chinese tourists. For reference, only 87,000 Chinese citizens came to the Philippines through May. While Korean tourists have returned to around 70% of the pre-COVID levels, Chinese visitation sits at only 12% of the pre-pandemic levels, Sevidal and Carvajal concluded.
The recovery of the Philippine gambling sector is further attested by the improved rating of Melco Resorts. The company, which operates casinos across Asia, recently had its rating upped from Neutral to Outperform by Credit Suisse.
The Philippines Are Still Struggling with Gambling Crimes
In the meantime, the Philippines continue the war on illegal gambling as the country seeks to crack down on fraud and maintain a healthy gaming ecosystem. Two weeks ago, the Philippine National Police said that it has arrested over 41,000 people with ties to illegal gambling in 2023 alone.
In more recent news, the PAGCOR warned the public about false POGO advertisements that are the product of “unscrupulous groups” involved in human trafficking and crypto scams. The regulator noted that the offerings present a danger to customers who interact with them.