2022 Gambling Revenue in Philippine Casinos Surpasses $3.3 Billion, Approaching Pre-Pandemic Operational Standing
In 2022, the gaming industry in the Philippines raked in PHP184 billion (approximately $3.3 billion), marking a significant recovery from the pandemic-induced slump. This resurgence was reported by PAGCOR, the Philippine Amusement and Gaming Corporation, on Monday.
The data showed that the Philippine gaming industry nearly doubled its revenue from the previous year, with casino gross gaming revenue (GGR) reaching around $3.75 billion in 2022. The commercial casinos in the Entertainment City market of Manila, including City of Dreams Manila, Solaire Resort & Casino, Okada Manila, and Resorts World Manila, accounted for approximately $2.65 billion of this revenue. Other commercially operated casinos in the Clark Freeport Zone and Fiesta casinos added about $399.5 million.
PAGCOR, which oversees casinos across the islands and operates its own under the Casino Filipino brand, reported a GGR of about $288.3 million. As a state-controlled enterprise, PAGCOR is the second-largest tax generator for the Philippine government, trailing only the Internal Revenue and Customs bureaus.
Additional revenue was generated from bingo, electronic gaming parlors, and betting on cockfighting, totaling $549.1 million, bringing the total gaming revenue in the Philippines to about $3.9 billion in 2022.
Pandemic Recovery
The Philippines' gaming industry has been one of the fastest to recover from the COVID-19 pandemic in Asia. Although China's Macau continues to struggle with a meaningful recovery, analysts believe that the rebound has commenced after China President Xi Jinping ended "zero-COVID" in November. In contrast, the Philippines' gaming sector showed strong performance throughout most of 2022.
The approximately $3.3 billion in 2022 casino revenue in the Philippines was just $600 million shy of the $3.9 billion the commercial and PAGCOR casinos earned in pre-pandemic 2019.
There's growing optimism about the future of the Philippines' casino sector. With Macau expelling most of its junket groups catering to high-rollers, some VIP travel companies are expected to shift their operations to the Philippines.
Though PAGCOR plans to tightly regulate these junket groups to monitor the international movement of money, the Philippine government will reportedly continue to allow such operators to collaborate with the integrated resorts in Manila.
These junkets usually offer luxury accommodations and travel to high rollers in exchange for a commitment to gamble a certain amount. The casino then shares the generated GGR with the junket firm.
Recovery Surge
According to PAGCOR, casino GGR in the final quarter of 2022 totaled about $934 million, representing a 95% year-over-year jump. This data indicates that casino revenue has increased for six consecutive months.
The Philippines lifted all COVID-19-related operating restrictions on commercial and state-owned casinos at the end of 2021. Border entry rules were loosened in February 2022.
The current rally is driving more gaming development in the Philippines. One significant project is underway by Bloomberry Resorts, the owner and operator of Solaire.
Bloomberry officials stated in their recent full-year earnings report that they're fast-tracking the completion of Solaire Resort North, a upcoming casino in Quezon City north of Manila.
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