The Philippine Amusement and Gaming Corp generated $2.2bn in revenue last year.
While this is up 10 per cent from 2012, the figure falls 12 per cent below PAGCOR’s forecasted revenues of $2.5bn. To put the results in perspective, the Las Vegas Strip generated $6.5bn in gaming revenue last year.
The cause of the shortfall was lower-than-expected tourist arrivals from Hong Kong and mainland China thanks to a territorial conflict in the South China Sea and a deadly hostage situation in 2010, PAGCOR said.
Had it not been for that, gaming revenue growth would have probably reached 20 per cent, according to Enrique Razon, head of Philippines-traded Bloomberry, which is already operating one of the four casinos at Entertainment City along Manila Bay.
Razon predicts the political issues with Hong Kong and China will continue to hurt results this year and next. However, PAGCOR CEO Cristino Naguiat expects double-digit growth in gaming revenue this year as Melco Crown and Belle Corp open their $1.3bn casino in Entertainment City.
