The possibility of the Philippines surpassing Singapore to become the world's second-largest gambling market by 2025 is being analysed by the specialised publication IGB, according to the country's gambling regulator.
According to Pagcor's Chairman and CEO Alejandro Tengco, the Philippines is on track to potentially surpass Singapore in terms of gambling revenue, as Singapore currently holds the second spot after Macau. Tengco suggests that if Singapore does not expand, they may fall behind, and the Philippines could overtake them in the near future.
He was discussing the gambling monopoly in Singapore, where Resorts World Sentosa and Marina Bay Sands have exclusive rights until 2030. In 2022, Genting Singapore and Sands China agreed to invest $9 billion in non-gaming entertainment at integrated resorts to maintain their exclusivity. In contrast, the Philippines has numerous casinos under construction but only generates $4.8 billion in revenue from 76 casinos and gaming parlours, while Singapore earns approximately $6 billion from just two major IRs.
More casinos are opening in the Philippines H2
Tengco believes that launching new facilities can help to bridge the revenue gap. The opening of the billion-dollar Solaire North casino in Quezon City, featuring numerous gaming tables and slot machines, is seen as a significant milestone for Bloomberry Resorts Corp. Tengco highlighted the impact of this development on the gaming and tourism sectors in the country. Plans for additional casinos in Clark, Boracay, and Cebu, including a potential acquisition by TRLEI of PH Resorts' Emerald City casino project, are in the works. These upcoming resorts have the potential to attract more global tourists and support the Philippines in achieving its target of 7.7 million international visitors by 2024. With nearly two million international tourists already arriving in the country as of April 2024, the majority being foreigners, there is optimism for a positive trajectory in the tourism industry.
Chinese tourist flow has slowed down, but Korean tourist flow is growing H2
Based on data from the Department of Tourism as reported by the Philippine Star, Korean tourist arrivals in the Philippines are increasing while Chinese tourist numbers are declining. Koreans make up over 27% of total tourists and are the leading clients in casinos, followed by visitors from Japan, Malaysia, and Singapore. The country hopes that new integrated resorts will offset the drop in Chinese tourists. Meanwhile, a reciprocal visa waiver agreement between Singapore and China has led to an increase in Chinese visitors to Singapore. Additionally, the Philippines aims to attract more foreign investment by enhancing anti-money laundering protocols and being removed from the FATF grey list. Casinos are a key focus for the government in addressing money laundering concerns. AMLC chief Matthew David is optimistic about the country being removed from the grey list this year.
Resorts World expands in Singapore H2
In Singapore, Resorts World Sentosa is set to kick off its RWS 2.0 expansion at a cost of $5 billion. A new 700-room waterfront resort in Sentosa is in the works. Other upcoming projects include Minion Land at Universal Studios Singapore and the Singapore Aquarium, slated to open in early 2025. Meanwhile, Marina Bay Sands is planning a $3.3 billion expansion that includes a fourth hotel high-rise, an expanded gaming area, additional MICE facilities, and a 15,000-seat entertainment arena.
These developments could see Singapore's gambling revenue hit $7 billion this year and potentially reach $10 billion in the near future, surpassing the Philippines once again in terms of construction progress, as per CEO Rob Goldstein of Las Vegas Sands Corp. According to gambling analyst Christopher Hu, the competition in the industry will keep everyone on their toes.
