The market for gambling by Chinese is likely to grow in the Philippines, fuelled by junket-based proxy betting and the prospect of visa-free access for Chinese tourists, says a Thursday note from banking group Morgan Stanley. The bank said the new generation of high-quality casino resorts in Manila were best positioned to capture such business from overseas and also domestically.
Gambling by Chinese customers contributed 30 percent of gross gaming revenue (GGR) at Manila’s Solaire Resort and Casino in the first half this year, suggested Morgan Stanley.
“Macau junkets (with proxy betting) and strong Chinese visitor arrivals (first half 2017: +33 percent year-on-year) are the key drivers, Comparing the gross gaming revenue mix that is contributed by Chinese across Asian gaming jurisdictions, we see ample room for growth in the Philippines, compared to Macau (90 percent); Paradise [Co Ltd] in South Korea (55 percent VIP drop in 2016); and Australia (50 to 70 percent of VIP),” wrote the analysts Alex Poon and Praveen Choudhary (READ SO: CHINESE PEOPLE WILL BE A KEY FOR THE CASINO INDUSTRY)
“On August 17, the Philippines government granted visas on arrival to Chinese visitors (tour groups/businessmen, etc), and this might eventually expand to visa free,” said Mr Poon and Mr Choudhary.
The media outlet suggested that Galaxy Entertainment was eyeing a partnership with Philippine businessman Alfredo Benitez, founder of Leisure and Resorts World Corp, a local company that has several interests in the land-based and online gambling sectors.
On August 18, it was reported that China’s State Council, the chief administrative body of the People’s Republic of China, had indicated there would be a ban on “overseas” gambling investments by Chinese firms. But the announcement did not define what companies or businesses might be covered by the requirement.


