Things are looking rosy again for the Philippine casino and gaming industry amid the reopening of the country’s borders to international tourists, loosening of mobility restrictions, and easing of capacity constraints.
More licensed gaming operators reported higher gross gaming revenues, improved foot traffic, and higher non-gaming revenues in the third quarter of 2022.
The continued reopening of the domestic economy is revitalizing the travel, hospitality, gaming, and entertainment sectors and is boosting hopes the overall domestic casino business will soon bounce back to pre-pandemic levels.
More than two years into the pandemic, state-run Philippine Amusement and Gaming Corp. reopened the gaming industry for business and supported activities to enable gaming firms to recover lost revenues.
PAGCOR predicted that the Philippine gross gaming revenues would exceed 2019 levels by 2026. But as early as now, many gaming firms are reporting gaming revenues closer to pre-pandemic levels.
Tiger Resort, Leisure and Entertainment Inc., the operator of Okada Manila Casino Resort in Entertainment City complex in Paranaque, has yet to release its third-quarter performance, but its top executive noted the dramatic increase in visitors this year.
TRLEI president Byron Yip said he was expecting Okada Manila to end 2022 on a high note amid the steady rise in foot traffic and continued influx of foreign and local guests.
He said foot traffic in Okada Manila surged 355 percent in the first nine months from same period last year.
“We at Okada Manila are seeing green shoots of recovery from when the pandemic struck the Philippines in 2020. Through the collaboration of our employees and leaders, Okada Manila was able to record more than two-fold growth in our monthly foot traffic,” Yip said.
To accommodate its patrons and guests, Okada Manila opened new facilities and attractions this year.
It has recently expanded its retail business, revamped some of its restaurants and opened a new VIP club and function rooms. It also reopened The Fountain—one of the main attractions of the casino that features a dazzling light and water show.
“With the revitalization of the travel, hospitality, gaming and entertainment sectors, we are optimistic that we will continue to ride on a growth momentum and end 2022 on a positive note,” Yip said.
Bloomberry Resorts Corp., the owner and operator of Solaire Resorts and Casino, said in a financial report that it returned to profitability this year, with net income from January to September reaching P4 billion. This was a dramatic turnaround from the P3-billion net loss it booked in the same period last year.
Nine-month consolidated GGR hit P35.4 billion, representing an increase of 80 percent from P19.6 billion in the first nine months of 2021.
Solaire’s VIP rolling chip volume, mass table drop and slot coin-in reached P132.8 billion, P10.6 billion and P85.1 billion, representing year-on-year growth of 23 percent, 77 percent and 118 percent, respectively.
Bloomberry said growth was seen across all segments, driven by strong domestic demand and supported by much easier COVID-19 mobility and travel restrictions both locally and within the Asian region.
“Against a global economic backdrop of rising inflation and interest rates, our business saw third-quarter gaming volumes further improve toward pre-pandemic levels,” Bloomberry chairman and chief executive Enrique Razon Jr. said.
Razon said while gaming revenues remained predominantly driven by domestic mass gaming sectors, Solaire’s VIP segment began to show progressive recovery because of the gradually improving international traffic.
He said that as overall gaming conditions continued improve, the group was focusing on completing its second integrated hotel and casino located in Quezon City. Solaire Resort North is slated to open by the fourth quarter of 2023.
Meanwhile, Travellers International Hotel Group., the owner and operator of Newport World Resorts, an integrated tourism complex in Pasay City, also performed stronger in the first nine months of the year.
GGR at Newport World Resorts jumped 77 percent to P22.7 billion in the first nine months of 2022 from the same period last year. Third-quarter core revenues soared 116 percent to P6.4 billion.
The gaming firm said it benefitted from the more relaxed mobility restrictions under Alert Level 1 and began operating at full capacity.
Non-gaming core revenues from hotels, food, beverage and others also increased by 83 percent in the nine-month period to P3.5 billion.
With the reopening of tourism to international tourists starting February 10 this year, hotel occupancy rates of its five hotels in Newport World Resorts improved to a range of 54 percent to 79 percent from 50 percent to 75 percent last year.