Philippine Casino Industry Continues to Recover With GGR Forecast To Exceed 2019
- Philippine GGR could reach US$5.2B in 2023
- Casinos are expected to perform better in Q4 with the return of Korean and Chinese visitors
- Philippine GGR is projected to hit US$10B by 2027
The Philippines is on course to exceed its 2019 gross gaming revenue (GGR) by at least 5% by the end of the year as the country’s casino industry continues to recover from the pandemic.
In its latest forecast, gaming consultancy firm GCG Gaming Advisory Services Pty Ltd said an increase in Korean and Chinese visitor numbers would boost Philippine GGR for Q4 of 2023, resulting in full-year results of between US$5.0 billion and US$5.2 billion.
2023 Forecast Downgraded But Still Positive
While GCG’s latest forecast represents a downgrade from its previous prediction of US$5.2 billion to US$5.9 billion for full year 2023, the Philippines this year remains on track to go beyond its pre-pandemic GGR.
Providing its latest forecast, GCG took into account the most recent industry-wide GGR covering casino resorts, state-run gaming venues, as well as non-casino bingo and electronic games parlors throughout the country.
During Q3 of 2023, gambling operators generated US$1.24 billion in total GGR, just a slight increase from the US$1.19 billion recorded during the same period in 2022.
GCG noted that casinos located in Manila have been performing well below expectations this year. In particular, Entertainment City’s Q3 GGR was down 5.7% from Q1 of 2023. The drop in revenue is mainly attributed to the lack of Chinese junket play, GCG said in its latest update.
Even so, Entertainment City’s GGR for the entire year is expected to hit up to US$3.4 billion, a slight improvement from the US$3.23 billion it recorded in 2019.
Q4 GGR Likely to Boost Full-Year Results
The outlook remains positive for the entire industry, as it is expected to perform better during the fourth quarter, helped by the anticipated increase in the number of Korean and Chinese visitors. Top performers would include the casinos in Clark which have enjoyed revenue growth across the first three quarters of 2023.
GCG said national GGR for Q4 of 2023 will likely exceed the record US$1.26 billion generated in Q4 of 2019, and all in all, Philippine GGR for the entire year is expected to range from US$5.0 billion to US$5.2 billion, at least 5% higher than 2019 ‘s US$4.84 billion.
As the Philippine casino industry continues to grow, GCG sticks to its previous forecast that annual GGR could reach US$10 billion by 2027.