Gaming firms make huge bet on recovery

MANILA, Philippines - Gaming companies are focused on growing their business despite the challenges besetting the industry.

The local casino industry has slowed down partly due to the effects of China’s crackdown on gambling, which has depressed gaming revenues in the region.

Kevin Sim, chief operating officer of City of Dreams Manila, the latest casino resort to open at the 100-hectare Entertainment City of the Philippine Amusement and Gaming Corp. (Pagcor) in Paranaque, said City of Dreams is doing well. 

“Despite being open only a few months, City of Dreams leads the Philippine market in visitation rates, which positions City of Dreams Manila to be the leading integrated resort in the Philippines now and in the future,” Sim told The Star. 

“We are confident that City of Dreams will continue to expand across all segments, with gaming and non-gaming revenues delivering robust growth in the remaining quarters,” he said.

City of Dreams is operated by Melco Crown Philippines, a subsidiary of Melco Crown and Belle Corp.,

It incurred a net loss of P4.9 billion in the first half of the year, which it attributed to taxes, fees and expenses related to the continuous improvement of the resort and casino complex.

Asked about the gaming boom in South Korea, Sim said it’s business as usual for the company and that it doesn’t see any impact on its business.

Travellers International Hotel Group, operator of Resorts World Manila, is also optimistic about the local gaming industry’s prospects.

 “Resorts World continues to innovate and evolve to address customer needs and wants. It continues to strengthen its integrated offerings -- entertainment, F&B, hotels, MICE or meetings, incentives, conferences, and exhibitions  as well as retail, among others, for a more holistic customer experience,” said Owen Cammayo, director for corporate communications at Resorts World.

He said the company is pursuing  concrete and aggressive expansion plans in the next five years.

Tavellers International president Kingson Sian said the company would continue to focus on strengthening the non-VIP segment, expanding the international market and at the same time growing the non-gaming revenues.

“These are all deliberate action plans that will enable us to deliver quality earnings to our investors and shareholders,” he said.

Travelers reported a slight drop in its first half net income to P2.4 billion as gaming revenues dropped 10.5 percent to P5.7 billion.

 Bloomberry Resorts Corp. likewise incurred a net loss of P786.5 million in the second quarter, widening its loss for the first six months to P1.32 billion.