Manila casinos increasingly reliant on junkets

Increased use of junket operators gave Manila casino gaming revenue a serious shot in the arm in Q3 2016.

Figures released Monday by the Philippine Amusement and Gaming Corporation (PAGCOR) showed the country’s overall gaming market revenue rising 11.2% to P39.7b (US $807m) in the three months ending September 30.

The bulk of this revenue was generated by the land-based casino sector, which rose 12.3% to P34.1b. Of this sum, P22.6b (+20%) was generated by the casinos in Manila’s Entertainment City gaming zone (a category into which PAGCOR bundles Genting’s Resorts World Manila). PAGCOR-run casinos weren’t as fortunate, rising only 1.6% to P8b, while revenue at casinos in the Clark Freeport Zone fell 4.2% to P3.1b and the Thunderbird casino resorts rose 8.7% to P421m.

The Manila casinos continue to derive the bulk of their revenue from non-junket sources but the gap is closing. Non-junket revenue improved 12.4% to P10.5b while junket-derived revenue jumped 20.5% to P6.9b (although this was slower than Q2’s explosive growth). Electronic gaming machine (EGM) revenue was up 16.6% to P7.2b.