Billionaire Says Macau Collapse Will Not Hurt Philippine Casino Industry

The casino industry in the Philippines is growing at a rapid pace as the market has looked to capitalize on the collapse of Macau’s gambling industry. Ever since Beijing imposed a strict anti-corruption crackdown targeting high rollers from Mainland China, neighbouring countries like the Philippines, South Korea and Vietnam have made an attempt to attract VIP gamblers from Mainland China.

The strategy appears to be working for South Korea as the casino industry has exploded and visitors from Mainland China continues to grow at a rapid pace.

This hasn’t been the case in the Philippines as although the government has made its gambling laws extremely friendly to both operators and players, there has been a lack of Mainland China VIP gamblers.

Bloomberry Resorts Corp, a casino operator in the Philippines recently reported a 61% decline in revenue giving it the unenviable title of being the worst major stock in the nation. Gaming analysts have confirmed that the number of VIP gamblers travelling from Mainland China to the Philippines has fallen below initial estimates. The fact that the current governments in China and the Philippines do not have a strong relationship has also impacted the tourism flow between the two countries.

Enrique Razon Jr, a billionaire in the Philippines remains optimistic about the country’s casino industry and said that there wasn’t any significant reason for gambling operators in the Philippines to panic. Razon clarified and stated that people who compare Macau’s declining casino industry to the casino industry in the Philippines were drawing wrong conclusions.

Razon believes that the casino industry in the Philippines can continue to grow by focussing on mass market gamblers and the local market instead of focusing on VIP gamblers from Mainland China.

Not everyone shares Razon’s views as many gambling analysts believe that the casino industry in the Philippines will grow at a slow pace if it does not manage to attract Mainland Chinese on a regular basis. In a statement, Astro del Castillo, managing director at First Grade Finance Inc said

The environment will remain difficult and investors will remain skeptical as it’s hard to imagine where spectacular growth will come from for Philippine casinos without China, since that’s the region’s biggest source of gaming traffic.

Razon believes that casinos in the Philippines should stop targeting VIP gamblers directly and instead work with junket operators who specialize in bringing over VIP gamblers from countries all across Asia.