Philippines gaming regulator casino sell made tougher as domestic players shift to Entertainment City and Clark: Maybank Securities
Tuesday 23 de May 2023 / 12:00
2 minutos de lectura
(Philippines).- A plan by Philippines gaming regulator PAGCOR to sell off its casino operations arm is likely to be made more difficult by the increasing number of domestic players moving from PAGCOR casinos to integrated resorts in Manila and Clark, according to Maybank Securities research.
In a Tuesday note delving into Philippines industry-wide gross gaming revenues in 1Q23, Maybank analyst Miguel Sevidal observed a significant increase in the market share of the nation’s licensed casinos, with Manila’s Entertainment City seeing share rise from 70% five years ago (1Q18) to 80% in 1Q23, while Clark has risen from 5% to 12% over the same period.
By comparison, market share held by PAGCOR casinos has fallen from 24% in 1Q18 to 8% in 1Q23.
“This suggests some movement by domestic players from PAGCOR’s Casino Filipino outlets to the integrated resorts, and is consistent with our observation of Entertainment City’s increasing wallet share in recreation and entertainment spending by locals,” Sevidal said.
This combination of decreasing market share and below-average industry growth “make PAGCOR’s Php80 billion (US$1.44 billion) valuation expensive,” he added. “These trends were seen again in 1Q23.”
As reported by Inside Asian Gaming, PAGCOR Chairman and CEO Alejandro Tengco has made the privatization of PAGCOR casinos a priority of his term in office, allowing the agency to fully focus on its regulatory role and eliminating concerns over a conflict of interest. However, analysts have questioned whether the asking price is too high and warned that interest in acquiring the agency’s 41 casinos may therefore be subdued.
PAGCOR concerns aside, Sevidal noted that the Philippines gaming industry as a whole is booming, with sector-wide GGR up 107% year-on-year and 21% quarter-on-quarter in 1Q23. Compared to the same quarter in 2019, Entertainment City GGR is up by 38% and Clark by 193%.
“We retain our positive view on the Philippine gaming sector following 1Q23 results, which showed sustained industry GGR growth … outpacing the growth of state-run casinos,” Sevidal said.
By Ben Blaschke
Categoría:Reports
Tags: Sin tags
País: Philippines
Región: Asia
Event
GAT EXPO CARTAGENA 2025
28 de April 2025
Payphone and its First Experience at GAT Expo Cartagena: Expansion and Connections Key to the Future
(Cartagena, Exclusivo SoloAzar).- Paola Murillo, Business Development Manager at Payphone, talked with SoloAzar about the company experience at GAT Expo Cartagena. The company aims to interact with regulatory authorities to drive its expansion in Latin America and the Caribbean. How does the firm plan to have more presence in these strategic markets? Read more in the following Q&A.
Friday 09 May 2025 / 12:00
21Viral Elevates Its Presence at GAT Expo Cartagena: Innovation, Networking & Business Expansion
(Cartagena, SoloAzar Exclusive).- In a Q&A with SoloAzar, Luz Beatriz Jaramillo Serna, 21Viral Sales Manager Latam, emphasizes the importance of regulatory interactions and networking for business growth. Discover the key takeaways from this exclusive interview!
Friday 09 May 2025 / 12:00
GAT Expo Cartagena 2025 reaffirms its leadership in the gaming sector in Latin America
(Cartagena, SoloAzar Exclusive).- With record attendance, strategic alliances, and a high-level academic agenda, GAT Expo Cartagena is driving innovation and industry growth in the region. In conversation with SoloAzar, CEO José Aníbal Aguirre discusses the highlights and upcoming GAT events in Latin America for the rest of the year.
Thursday 08 May 2025 / 12:00
SUSCRIBIRSE
Para suscribirse a nuestro newsletter, complete sus datos
Reciba todo el contenido más reciente en su correo electrónico varias veces al mes.