PAGCOR Posts Record Results
In results announced Jan. 30, the Philippine Amusement and Gaming Corp. (PAGCOR) called 2024 a record year for gaming revenue in the jurisdiction. The state-run regulator said the industry generated PHP112 billion (US$1.9 billion) in 2024, up almost 41 percent year-on-year.
PAGCOR Chairman and CEO Alejandro Tengco attributed the results to the e-Games and e-Bingo sectors. Together, they contributed PHP48.79 billion to the total—slightly more than 50 percent.
“Our 2024 financial performance is the best so far in the history of PAGCOR,” said Tengo, “and we thank our employees and stakeholders for making such achievement possible.”
PAGCOR exceeded the PHP100 billion mark just once, in 2018, with revenues of PHP104.12 billion. But that outcome was influenced by a one-time sale of property worth PHP32.71 billion.
Survey: Most Thai Residents Oppose Casinos
A majority of Thailand residents surveyed by the National Institute of Development Administration (NIDA) say they don’t support the government’s push for entertainment complexes with casinos in the largely Buddhist kingdom.
According to the Bangkok Post, the NIDA poll showed that 59.19 percent of respondents oppose the complexes, with just 29 percent supporting them. In addition, more than 58 percent strongly oppose legal online gambling.
Draft legislation calls for five resorts with conference centers, amusement parks, hotels and concert venues as well as casinos. The bill has been approved in principle by the cabinet and is now under review by the Council of State, which has 50 days to present its report. It will then go to the parliament.
Proponents of the bill say the resorts will increase tourism revenue by 13 percent; Citigroup estimates that a mature Thai gaming industry could reap revenue of US$9.1 billion in gross gaming revenue (GGR) per year—more than Singapore, the third-largest global market behind Macau and Las Vegas.
But some are worried about the social cost. The Stop Gambling Foundation (SGF) of Thailand says the casino plan is a short-term fix that cannot fix complex problems. “The state does not have money, does not know how to make money,” and is resorting to gambling as a cash grab, said SGF member Wichet Pichairat.
Thai lawmakers hope to open the first complexes by 2029, before Japan debuts its first casino resort in Osaka.
Macau Gaming Industry Expects Strong Chinese New Year
Thanks to relaxed visa policies and an economic kickstart from Beijing, casinos in Macau could exceed analysts’ expectations for growth in 2025.
A strong Chinese New Year (CNY) should help. The national holiday, which began Jan. 29, could bring up to 150,000 travelers a day to the special administrative region (SAR), in spite of a lingering recession. According to MSN, as of last week more than 21 luxury hotels had already sold out for the early days of the holiday.
Beijing is lending a hand, with Individual Visa Schemes (IVS) “fully relaxed and optimized” to entice more tourists to the city, according to Macau Business.
The central government has trimmed interest rates and “pushed a basket of incremental policies to promote (economic) recovery,” said Chinese President Xi Jinping in the runup to the festivities.
Last month, S&P Global warned that continuing economic turbulence could “impair Macau cash flow and (compromise) improvement.” But the Macquarie Capital team believes consensus forecasts of a 6 percent-plus boost in gross gaming revenue (GGR) for 2025 are “too bearish.” Along with stimulus measures, they pointed to international roadshows designed to boost overseas travel to Macau.
“China values Macau and continues to endorse the destination,” the team wrote.
Vitaly Umansky of Seaport Research said GGR could grow by 7 percent “if the Chinese economy grows and consumer confidence levels improve.”
LVS’ Q4 Buoyed by Strength in Singapore
Despite mixed results, shares of Las Vegas Sands Corp. (LVS) surged more than 8 percent after hours following fourth-quarter financials released Jan. 29.
Total revenue fell slightly to $2.9 billion, but exceeded analyst estimates of $2.87 billion, according to Benzinga. The take from Macau operations fell about 5 percent to $1.86 billion.
LVS Chairman and CEO Rob Goldstein noted “ongoing recovery” and lower visitor spend has hampered results in Macau, where the company operates the Sands Macao, Venetian Macao, Londoner Macao and Parisian Macao.
But Singapore, home of Marina Bay Sands, “continued to deliver outstanding financial and operating performance” for the U.S.-based firm, he added.
“We continued to execute our strategic objectives during the quarter,” said Goldstein. “We remain enthusiastic about our opportunities to deliver industry-leading growth in both Macau and Singapore in the years ahead as we execute our capital investment programs in both markets.”
Sentiment on investor website Stocktwits did an about-face on the results, going from “bearish” to “extremely bullish” following the call. According to Market Insider, Citi raised its target on LVS from $64.50 to $67. It maintained a “buy” rating on the stock.
Philippine Senators Insist Chinese National Granted Citizenship Has No POGO Ties
On Jan. 27, a majority of Philippine senators granted citizenship rights to Li Duan Wang, a Chinese national who has been linked to the vice-ridden offshore gaming industry.
According to the Philippine Star, 19 senators voted to approve Li, described by Sen. Risa Hontiveros as a junket operator that did business with an illegal Philippine Offshore Gaming Operation (POGO). In July 2024, President Ferdinand Marcos Jr. banned POGOs following revelations that some were fronts for online scams. Multiple POGO raids turned up evidence of money laundering, human trafficking and torture.
Hontiveros, who led the Senate investigation into POGO crimes, presented a photo of Li with POGO “big boss” Duanren Wu, the alleged mastermind of a POGO in Pampanga.
“It should not inspire confidence in us Senators that Wang is an associate of a fugitive and a POGO boss embroiled in human trafficking,” she protested.
Hontiveros cast the sole dissenting vote. Those in favor included leading POGO critics like Senate President Francis Escudero, Senate President Pro Tempore Jinggoy Estrada and senators Sherwin Gatchalian and JV Ejercito. They insist they found no “direct links of Li to POGO,” Gatchalian said.
“We respect (Hontiveros’) vote,” Escudero said. “But the majority decides on the passage of a bill. That is democracy.”
