Changes in Player Demographics to Create Opportunities for the Casino Gaming Market in the Philippines Through 2020, Reports Technavio

LONDON--()--Technavio analysts forecast the casino gaming market in the Philippines to grow at a CAGR of close to 10% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the global casino gaming market in the Philippines for 2016-2020. Casinos in the Philippines are a popular recreational spot for tourists as well as citizens. However, new technologies like smartphones and tablets have changed the dimension of entertainment in the country. Casinos are also undergoing digitalization. More and more games are being played online with real money by real players.

Technavio media and entertainment analysts highlight the following four factors that are contributing to the growth of the casino gaming market in the Philippines:

  • Boost in VIP revenue
  • Increase in minimum bets
  • Supplement to national economy
  • Changes in player demographics

Boost in VIP revenue

A considerable portion of the revenue generated in the Philippines gambling market is through the VIP customer segment. This segment is expected to have increased growth and revenue with more VIP tables being added to the casinos. Macau's largest junket operators have already started business in the country, accelerating the flow of income from this gaming segment.

The revenue generated from casinos is different in different countries. The contributions of VIP revenue in China are significantly low considering the fact that China is the biggest revenue contributor for the casino market in APAC. However, the contribution of the VIP segment in the growth and revenue of casinos in the Philippines will increase during the forecast period, since they are scaling up to match the luxuries provided by the casinos in South Korea and Australia, but at a relatively lower price.

Increase in minimum bets

The casino market in the Philippines is fast becoming one of the biggest markets in the world and is increasingly appealing to foreign customers. According to Ujjwal Doshi, a lead analyst at Technavio for media and entertainment services research, “The number of customers winning per table has increased in 2015, which is encouraging further investments and increases in the minimum bets per table.”

The minimum bets have grown from USD 350 in 2014 to USD 500 in 2016 on VIP tables and from USD 20 to USD 50 in the mass segment in the same time frame. The table earnings per day are expected to increase at close to 32% in just two years.

Supplement to national economy

The casino industry is a significant part of the nation's economy. The revenue generated supports several economic activities and various other community development programs. The industry also has the potential to create a number of jobs.

The number of foreign visitors has increased rapidly in 2015, and a major part of it is due to the growing casino industry. In 2015, over 67% of a total of 540,600 foreign visitors who came to the Philippines visited the gaming hub, Manila.

Changes in player demographics

Traditionally dominated by males, casino games have opened up to include women, as well as older people. This change in demographics is changing the perception of gambling, which was once considered a vice. “The government's involvement, particularly in the form of regulations that bring down the gambling amounts, is rapidly changing the social stigma around the game. Casino games are now being seen as more of a leisure activity than something which involves losing money,” says Ujjwal.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

Release Summary

Technavio analysts forecast the casino gaming market in the Philippines to grow at a CAGR of close to 10% during the forecast period, according to their latest report.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com