Philippine casinos are on a losing streak due to increasing costs resulting from business expansion but the Philippine Amusement Gaming Corp (PAGCOR) remains bullish as gaming revenues in the country are still going up.
PAGCOR Chairman Cristino Naguiat Jr. strongly believes that the Philippine gaming industry is growing despite the recent downturn of gambling companies. He said that this has nothing to do with the gaming behavior of players; instead it has more to do with companies’ expansion costs.
Naguiat said last month that there is a “good chance” that casino gross gaming revenue in the Philippines could reach $3 billion in 2015, up by 20% from the previous year.
Naguiat’s statement appeared to be true as Bloomberry Resorts Corp, which runs Solaire Resort and Casino in Manila’s Entertainment City, incurred a net loss of PHP1.3 billion in the first six months due to higher expenses but posted gross gaming revenue (GGR) of PHP15.63 billion in H1, up 10.7% year-on-year.
On the other hand, Resorts World Manila Casino and Hotel operator Travellers International Hotel Group Inc. saw gaming revenue fall 10.5% year-on-year to PHP5.71 billion in the three months ending June 30, while net profit fell 46.4% to PHP622 million.
Travellers said that as of June 30 a total of PHP14.3 billion has been spent on expanding Resorts World Manila. The second phase of the property, which includes the enlargement of the Marriott Hotel Manila and the addition of 227 rooms, should be ready by the first quarter of 2016
The third phase of Resorts World Manila will include more gaming space and two new hotels to be managed by Hilton Hotels and Resorts and the Sheraton brand of Starwood Hotels and Resorts. Travellers’ $1.1b Bayshore City Resorts World at Manila Bay is also expected to be completed in the fourth quarter of 2018.
Furthermore, City of Dreams Manila operator Melco Crown Resorts Corp announced a net loss of PHP4.9 billion in the first half of 2015 from P2.4 billion, which it attributed to taxes, fees and expenses related to the continuous improvement of the resort and casino complex.