Local strategy to support Philippine GGR growth

Maybank Securities expects the local gaming industry in the Philippines to achieve "roughly 15%" gross gaming revenue (GGR) growth in 2024.

In a note on Tuesday, the agency said it had maintained a "positive view" of the Philippine gaming sector, expecting GGR growth this year to be "driven by the domestic public and slot markets" and that it "would emerge from a gradual recovery in the VIP sector led by South Korean punters."

Maybank is also expecting "growth" outside the entertainment city of its large resort in the Philippine capital of Manila. "It's driven by the opening of Solaire Resort North and the recent surge in games," analyst Rafi Mendoza said.

The Philippines' GGR, which includes non-casino businesses, grew about 33% year-over-year to 285.3 billion PHP ($4.97 billion) in 2023.

Most of the "growth" came from land infrastructure, accounting for about 80% of the industry's GGR last year, up 23% from 2022, according to Maybank.

However, the electronic gaming sector "expanded the most" in 2023, growing "3.2 times year-over-year" to 33.2 billion PHP, with a "5% to 12% market share."

"We combined 64% of Entertainment City's GGR in FY23 with mass tables and slot machines to show a continued increase in domestic demand," Mendoza said.

"We believe this trend in mass and slot GGR will continue on the back of increased private consumption," the analyst said.

"Holding rates on volumes and slots should bode well for industry players as they are historically volatile and have high margins," he added.

Maybank expects VIP contributions to the industry's GGR to "continue to decline this year" as Chinese arrivals in the first three months of 2024 are "only 24%" of the first quarter of 2019. 바카라사이트

"Nevertheless, South Korean tourists are already leading the gradual recovery of the VIP sector, reaching 459,000 in the first three months of 2024, or 88 percent of the first quarter 2019 level," the agency said.

Pagcor expects the U.S. gaming industry to generate 336.38 billion PHP in total gaming revenue this year, up 17.9% from 2023.