Inside Asian Gaming

IAG JAPAN JUN 2019 42 Okada Manila continues to ramp following its 2016 launch オカダマニラは2016年の開業以来成長を続けている COLUMNISTS T he Philippine land-based casino market finished 2018with a total gross gaming revenue (GGR) of Php187.54 billion (approximately US$3.57 billion), representing a 22.9% year- over-year increase and a compound annual growth rate (CAGR) north of 20% for the period of 2015- 2018. Whereas GGR of the PAGCOR-operated casinos (Casino Filipino) had a fairly modest growth rate of around 4%, it is the casino resorts in Entertainment City that largely drove this stunning growth. Solaire Resort & Casino, City of Dreams Manila, Okada Manila and Resorts World Manila aggregately accomplished a total GGR of more than US$2.69 billion, a jump of nearly 30% from the prior year. In addition, the properties in the Clark Freeport and Special Economic Zone experienced 22.4% growth to reach an aggregate GGR of US$164.2 million, leading the growth momentum outside Manila. The Innovation Group has been constantly monitoring the market conditions and dynamics, and has been involved in a number of IR related projects in the country. A summary review on the Philippine market’s intrinsic competitive advantages reveals the following: 1) GAMING TAX REGIME The Philippines’ gaming tax regime remains commercially competitive in the Asia Pacific region, as operators can allocate more financial resources towards customer acquisition and/or capital improvements that result in greater prospective revenues. 2) WORKFORCE AND LABOR COSTS The local workforce in the country has the passion to work in most entertainment and hospitality settings. Additionally, English is one of the official languages and is usedas theprimarymediumof instruction in the country’s education system, making training and development sessions more effective. Meanwhile, labor costs in the