Gaming revenue from Belle Corp’s share in City of Dreams Manila fell by 12.1% year-on-year to PHP1.32 billion (US$22.4 million) during the first nine months of 2025, according to the company’s recent filing with the Philippine Stock Exchange.
The decline contrasts with a modest 1.3% increase in leasing income from the property, which rose to PHP1.76 billion, reported by GGR Asia.
Key Takeaways:
- Belle Corp reports a 12.1% decline in gaming revenue in early 2025
- Melco Resorts considers strategic alternatives for its Manila stake
- Industry faces volatility amid changing tourist flows and regulatory challenges
Belle’s consolidated net income also decreased by 13.6% year-on-year in the period, reflecting broader challenges in the casino industry. The company’s subsidiary, Premium Leisure Corp, operates under an agreement with Melco Resorts & Entertainment Ltd, the manager of City of Dreams Manila.
Melco Resorts Reviews Strategy Amid Market Shifts
In early 2025, Melco Resorts announced it was considering “strategic alternatives” regarding its stake in City of Dreams Manila, aligning with its shift to an asset-light investment approach. The process involves financial advisors CBRE Capital Advisors and Moelis & Company, though no final decisions have been made.
This move follows a period marked by declining operating income and hotel performance at the resort in 2024, as well as difficulties in the local VIP gaming market and reduced visitor numbers from key international markets, including China and South Korea, per Inside Asia Gaming.
Belle Corp has clarified that acquiring Melco’s interest in City of Dreams Manila is not part of its immediate strategy, pointing to the complexity of the current ownership structure.
Earlier this year, Premium Leisure Corp reported an 18% drop in gaming revenue for the first half of 2025, indicating ongoing pressures for integrated resorts within Manila’s Entertainment City.
Regional Pressures Drive Gaming Revenue Decline
Belle Corp experienced substantial growth in 2023, with gaming revenue at City of Dreams Manila increasing by 50%, driven by contributions from both the mass market and VIP segments. However, the recent downturn highlights volatility in the regional gaming sector amid shifting economic and regulatory conditions.
Industry analysts note that operators must adopt adaptive strategies to manage fluctuating tourist flows and evolving regulatory frameworks. Lawrence Ho Yau Lung, Melco’s chairman and chief executive officer, reiterated the company’s commitment to its asset-light strategy and the potential for further restructuring of its regional casino portfolio.
