ASIA IN FOCUS
Philippines Gaming Revenue Up 26 Percent in H1
On July 29, the Philippine Amusement and Gaming Corp. (PAGCOR) posted gross gaming revenues for the first half of 2025. Land-based and online gambling generated PHP214.75 billion ($3.72 billion) through June, up 26 percent over last year.
Online gambling — e-games in the Philippines — led the pack, contributing PHP114.83 billion. That’s almost 54 percent of the total, and an increase in the sector of 82.67 percent year-on-year.
In recent months, e-games have come under fire for allegedly increasing addictive behavior and financial strife, especially among young people and the poor. Senator Juan Miguel Zubiri has introduced Senate Bill 142, which would ban all iGaming operations that cater to Filipino users.
PAGCOR Chairman and CEO Alejandro Tengco opposes a ban, but acknowledges that stricter regulations may be in order. “Our role goes beyond revenue generation,” he said. “And as partners of the government in nation-building, we are committed to always strike a balance between enabling industry expansion and ensuring it aligns with responsible gaming standards.”
Licensed retail casinos and PAGCOR-operated casinos both saw a decline, contributing PHP93.36 billion, down 5.85 percent from last year’s PHP99.17 billion.
SJM Satellite Casino the First to Close as Macau Phases Out Sector
Macau casino operators will close most of their satellite operations by year’s end. The first to go: Casino Grandview in Taipa, which operated under the license of concessionaire SJM Holdings. The doors closed July 30.
In June, the Macau government and gaming operators — including SJM, Galaxy Entertainment Group and Melco Resorts & Entertainment — announced plans to close nine of the city’s 11 satellites, in response to changes to the city’s gaming law. Those changes, formalized in 2022, eliminated the revenue-sharing model for satellites, requiring them to work for management fees paid by concessionaires.
SJM Holdings will shutter seven of its nine satellites, including Casa Real, Emperor Palace, Fortuna, Kam Pek Paradise, Landmark and Legend Palace. It plans to acquire the other two, Ponte 16 and L’Arc Macau, and install in-house management.
SJM said the move supports its “long-term objectives [and] overall competitiveness.”
By Dec. 31, Melco will close its Casino Grand Dragon, also in Taipa. Galaxy has similar plans for the Waldo Casino on the Macau peninsula.
The local government has mandated that the concessionaires “properly settle employees affected by the closures,” and promised to “closely monitor” the results. All three have pledged to relocate as many satellite employees as possible to their owned-and-operated casinos. The satellite industry currently employs about 6,000 people.
Macau Sees Unexpected Boost in GGR
Macau has seen a boost in gross gaming revenue tied to increased tourism, special events, relaxed visa rules and a rise in VIP play.
Casinos recorded GGR of MOP$21.19 billion in May, up 5 percent year on year, for the single best month since borders reopened in Jan. 2023.
The trend continued in June, with GGR of MOP21.06 billion, up 19 percent. According to the Gaming Inspection and Coordination Bureau, as of mid-July casinos had generated MOP18.6 billion ($2.31 billion) in gross gaming revenue (GGR), up 11.6 percent year on year. That brought the yearly total to MOP132.35 billion, an improvement of 36.7 percent compared to 2024.
Bloomberg reported that gaming shares have risen 59 percent since April as GGR continues to outpace analyst expectations.
VIP gaming revenue for the first half rose 11 percent, versus just 2 percent for the mass market. High rollers kicked in about 26 percent of the half-year total. But, as Macau Business reports, mass players “still reign,” making up the balance of 74 percent.
The results led Seaport Research Partners to revise its 2025 forecast for Macau. The agency now projects 7 percent year-on-year growth for the world’s leading gaming destination, and second-half growth of up to 9 percent.
Donaco Comments on Drop in Cambodia Business
Star Vegas, Donaco International’s casino in Poipet, Cambodia, has seen a significant decline in foot traffic and revenue amid border tensions with Thailand, its prime feeder market.
In a July 16 statement, the company reported a 62 percent reduction in daily headcount and a 42 percent decline in hotel capacity. The conflict “has heightened” since a May 28 border clash that killed a Cambodian sergeant. While the current situation is “relatively calm,” Donaco reported, hostilities persist and the Thai government “continues to impose measures impacting border crossings,” particularly non-essential travel by Thai residents.
In the second quarter, net revenue fell 31 percent to $2.76 million, down from $4.02 million in the first quarter, according to a filing to the Australian Stock Exchange.
“Star Vegas has had a difficult quarter following the border dispute between Thailand and Cambodia, which has significantly impacted its operations,” said Porntat Amatavivadhana, Donaco’s non-executive chairman. “The dispute has resulted in reduced activity at Star Vegas, as its core customer base has been unable to cross the border from Thailand.”
Bilateral talks on June 14 did not lead to a resolution.
AGI to Invest $2B in Philippines IRs
Philippines conglomerate Alliance Global Group Inc. (AGI), parent company of Travellers International, expects to invest up to $2 billion in developing integrated resort projects in Boracay and Cebu.
The $300 million Boracay complex, which could open by the end of the year, will feature luxury villas and suites, an 18-hole golf course and a private beach.
According to Philippine Business World, in a 2024 interview AGI President and CEO Kevin Andrew L. Tan said Boracay World Resorts will be a “boutique-style” development, “just right for the island, with a more sustainable design.”
A second IR in Mactan, Cebu represents a $400 million investment. New hotels and the 2,500-seat Mactan Expo Center will bring the total into the $2 billion range.
