The Philippines’ $8 billion iGaming sector is fighting for its life. According to Bloomberg, the industry, which was closed down in April because it was deemed unessential, has only partly reopened and is feeling the financial pain. Only 14 of the nation’s 60 licensed operators have restarted, and two have closed down altogether.
“There are more to come. We’re just convincing them to stay,” said Jose Tria, assistant vice president of offshore gaming for the Philippine Amusement and Gaming Corp. (PAGCOR), the nation’s gaming regulator.
The industry caused a spike in Manila real estate values as hundreds of thousands of foreign workers, many Chinese nationals, came to the metropolis to live and work. The loss of that industry could leave 3.4 million square meters (36.6 million square feet) of combined office and residential space vacant, according to Leechiu Property Consultants Inc.
“They will just leave if nobody wants them,” David Leechiu, CEO of the company, told the news outlet.
In addition, workers in the industry account for as much as 1 percent of the nation’s consumer spending, said Nicky Franco, vice president for research at Abacus Securities Corp. in Manila.
Metro Manila must remain under general community quarantine until at least July 31, according to President Rodrigo Duterte.
“The spread of Covid in Metro Manila has not slowed down,” said presidential spokesman Harry Roque. The country is routinely recording more than 1,000 new cases a day, many in Metro Manila. The total number of cases since the pandemic began is nearing 60,000, with more than 1,600 recorded deaths.
Metro Manila has been under general community quarantine for about six weeks. If the industry in the Philippines doesn’t survive, it could benefit online gaming in Vietnam and Myanmar, said consultant Ben Lee of iGamiX. The two countries “are catching up very quickly” in terms of internet links to China and power supply, which would be necessary for a working iGaming industry.
Leechiu, of course, is hoping for a different outcome, saying, “To recover from the economic damage of Covid-19, (the Philippines) need as much economic activity as we can get.”
In other Philippines gaming news, junket operator Rich Goldman has announced that it will delay the start of its VIP room at Solaire Resort & Casino in Manila’s Entertainment City for three months.
