The Philippine Amusement and Gaming Corp (Pagcor) has set its sights on displacing Singapore as the world’s second-largest gaming destination, with Chairman and CEO Alejandro Tengco predicting that the country could surpass Singapore in gaming revenue as early as 2025. But is this a realistic goal?
Singapore’s gaming duopoly, comprising Resorts World Sentosa and Marina Bay Sands, currently holds all the cards until at least 2030. However, the Philippines has been gaining ground, with dozens of casinos spread across the country and more in the pipeline. In fact, the country generated $4.8 billion in gross gaming revenue (GGR) in 2022, compared to Singapore’s estimated $6 billion.
Tengco attributes the revenue gap to the Philippines’ lack of large-scale resorts. However, this is about to change with the opening of new casinos in Clark, Boracay, and Cebu. Bloomberry Resorts Corp’s Solaire North in Quezon City is just one example, with 200 gaming tables and thousands of slot machines.
New casinos are also planned for Clark, Boracay, and Cebu, which could help propel global tourism and boost international visitors to the country. The government aims to attract 7.7 million international visitors in 2024, just shy of the 8.26 million recorded in 2019.
Chinese visitation has slowed down, but Korean tourists are increasing, making up over 27% of the overall visitor base. Tengco believes that new IRs will “hopefully neutralise the decline in Chinese tourist arrivals.” Singapore, on the other hand, has seen an increase in Chinese visitation due to a mutual visa-free policy agreement.
The Philippines is also strengthening its anti-money laundering (AML) protocols and working to get off the Financial Action Task Force’s (FATF) grey list of countries vulnerable to financial crimes. Casinos are a concern for FATF and the government’s anti-money laundering council.
Resorts World Sentosa is poised to begin a $5 billion expansion, RWS 2.0, which will add a new 700-key waterfront resort. Marina Bay Sands is planning a $3.3 billion expansion that will include a fourth hotel tower and more MICE facilities.
While these developments are exciting for the Philippines’ gaming industry, Rob Goldstein, CEO of Las Vegas Sands Corp, believes that Singapore could reach $7 billion in GGR this year and $10 billion in the near future. This would leave the Philippines trailing behind.
For now, competition will continue to drive innovation and growth in both markets. As gaming analyst Christopher Khoo told Asia Gaming Brief, “Competition will certainly keep everyone on their toes.”
Only time will tell if the Philippines can displace Singapore as the world’s second-largest gaming destination. One thing is certain – both countries will continue to push each other to innovate and grow in this competitive industry.
