Alejandro Tengco, Chairman and CEO of the Philippine Amusement and Gaming Corporation (Pagcor), stated in a July interview with Bloomberg that the Philippines is poised to surpass Singapore by 2025, becoming the world's second-largest gambling hub after Macau. He believes that if Singapore's gambling market does not expand, it will stagnate, giving the Philippines a chance to catch up.

Challenging Singapore's Market Dominance

Although the Philippines already has dozens of casinos of varying sizes across the country, last year's 76 casinos and gaming halls only generated $4.8 billion in total gross gaming revenue (GGR), far below that of Singapore. However, the Philippines is actively expanding its gambling market to narrow this revenue gap. For example, the $1 billion five-star Solaire North resort, owned by Bloomberry Resorts Corporation, opened in Quezon City in May. The resort boasts 200 gaming tables and thousands of slot machines, showing strong future growth potential. In addition to Quezon City, new casino projects are planned in Clark, Boracay, and Cebu. The previously stalled Emerald Bay Casino is also likely to resume construction, which could bring more international tourists and gambling revenue to the Philippines.

Boosting International Tourism, South Korean Tourists as Key Drivers

The concentration of these new resorts is expected to accelerate the global tourism industry and help the Philippines achieve its goal of attracting 7.7 million international tourists annually by 2024. As of April, nearly 2 million international tourists had visited the Philippines, 94% of whom were foreigners, with the rest being overseas Filipinos. Despite a decline in Chinese tourists, the number of South Korean tourists has significantly increased, making up more than 27% of the total tourist base.

Among international tourists visiting for gambling and entertainment, South Koreans top the list, followed by tourists from Japan, Malaysia, and Singapore. Tengco hopes that the construction of new integrated resorts will offset the decline in Chinese tourists and attract more international visitors.

Additionally, the Philippines aims to strengthen anti-money laundering (AML) regulations to attract more foreign investment and be removed from the Financial Action Task Force (FATF) grey list, improving its image as a country with significant banking system vulnerabilities prone to financial crime.

Singapore Expands Casino Investments to Counter the Philippines, GGR Targeted at $10 Billion

Despite the Philippines' ambitious plans, Singapore is also actively expanding its gambling market. Resorts World Sentosa is set to begin a $5 billion expansion project, RWS 2.0, which is expected to add 700 new resort rooms. Meanwhile, Universal Studios Singapore's Minion Park and the S.E.A. Aquarium are under construction, with an expected opening in early 2025. Marina Bay Sands plans a $3.3 billion expansion, including a fourth hotel tower, expanded gaming floors, convention facilities, and a 15,000-seat arena.

With these developments and policies, Las Vegas Sands CEO Rob Goldstein estimates that Singapore's total GGR could reach $7 billion this year, and possibly even $10 billion in the future. For the Philippines to catch up, it will need to respond proactively and has a long road ahead.