Chairman and CEO of Bloomberry Resorts Corporation Enrique Razon believes that the Philippine gaming will still grow even if high-spending Chinese players never return to the gaming tables.
In an interview with The Inquirer, Razon reiterated that the country have dodged the worst effects of the corruption crackdown in China that has affected the Asian gambling sector and Macau in particular. One of the reasons is because the Philippine casino business model does not rely too much on the promise of revenues from mainland Chinese clients.
“We focused on other high rollers,” Razon told the Inquirer. “We had Chinese coming from Macau, Hong Kong, and we developed a good market in Taiwan. We have a very good market in Malaysia, and then other countries followed.”
Razon’s belief has been supported by double-digit growth in the Philippines gross gaming revenue in 2015. According to Philippine Amusement and Gaming Corp (PAGCOR) chairman Cristino Naguiat, gross gaming revenue from government-run and privately-operated casinos reached PHP130 billion ($2.75b) in 2015, an increase of 17% from 2014. PAGCOR-operated casinos showed a 15.75% increase in gaming revenue, while those of the licensees are up 18%.
Razon also added that the mass gaming market in his Solaire Resort and Casino is also growing, with half of the revenue coming from mass gamers from Korea. The casino is also picking up business from struggling Macau casinos as the number of its Chinese players is gradually increasing.
“Because of the crackdown last year in Macau, we started getting China players, little by little. That’s been growing steadily. Some moved to us, especially those who really like gaming and can’t go to Macau. We also get some from Singapore,” said Razon.
The company plans to invest more in its Philippine venture when the right time comes, but for now Bloomberry is also looking to expand its footprint overseas.
Bloomberry has already made its move in South Korea, when it reopened Jeju Sun Hotel & Casino last year. It has also announced plans to invest more than $1 billion in a proposed casino resort complex in the Incheon Free Economic Zone, near the country’s main international airport.
The company is also proposing to build a casino site in Buenos Aires, while vying for a gaming license in Cyprus.
