Inside Asian Gaming

IAG DEC 2022年12月 亞博匯 38 down the middle, with Solaire and City of Dreams to continue focusing on the “higher- margin mass and slot machine segments”, according to Maybank analysts (although Solaire also has strength in VIP), while Westside City and Okada Manila will lean towards the premium gaming segments. This is in line with AGI’s strategy at Newport World Resorts, located just outside of the Entertainment City precinct alongside Ninoy Aquino International Airport (NAIA), where VIP accounts for around 60% of Newport’s GGR and is driving GGR recovery for the firm. “According to AGI, almost half of Newport’s VIP GGR is driven by video streaming, which is not unexpected given the slow recovery of foreign fly- in business to the Philippines,” Maybank said in a note. “Management likewise shared that the new Suntrust Resorts property [at Westside City] will likely cater to the VIP and premium mass segments.” Importantly, Maybank’s Sevidal says of the upcoming Solaire Resort North and Westside City developments that “any new capacity is beneficial for the industry as a whole, as it attracts more players and translates to higher industry GGR. “When City of Dreams Manila and Okada Manila opened in FY15 and FY16, respectively, industry-wide GGR growth accelerated from 11% in FY12- 14 to 17% in FY15-19.” To put that into perspective, Philippines industry-wide GGR grew from US$1 billion in 2010 to US$2.8 billion in 2015 and US$5.3 billion in 2019. “Prior to the pandemic, the Philippines was the fastest- growing gaming market in the world,” Sevidal continues. “Casino GGR in the Philippines posted a 13% CAGR in FY14-19, faster than the GGR growth recorded by Macau, Singapore, Korea and Las Vegas. GGR growth in the Philippines was driven by both domestic demand and foreign fly-in business. Philippine GGR grew 18% year-on-year in FY19 amid slowdowns in Macau (-4%), Singapore (-6%) and Korea (-0.2%).” Maybank doesn’t provide any industry-wide predictions but estimates that Solaire Resort North will contribute GGR of Php101 billion (US$1.77 billion) by 2026, boosting Bloomberry’s group-wide GGR by 75%. COVER STORY