Philippine Casino Industry Will Not Be Hurt By Cannibalization

Philippine Casino Industry Will Not Be Hurt By Cannibalization

Brokerage firm Morgan Stanley has forecasted an optimistic outlook for the Philippine casino market despite the development of additional convention venue space and gaming facilities in the country. There were concerns from some quarters that there were too many gaming facilities being approved in the country and it could result in losses due to cannibalization in the industry.

The most recent casino resort to be opened in the Philippines is Okada Manila. The brokerage firm reviewed the market and indicated in its report that the new casino resort would not hurt the industry nor should there be a concern of cannibalization as demand strips supply.

Morgan Stanley’s report noted that the Philippine market was currently the fastest growing market in Asia, with a likely compound annual growth rate of nearly 25 percent between 2017 and 2018 for overall casino gross gaming revenue.

Okada Manila

In a statement Morgan Stanley said

We are not concerned about cannibalization, which is not visible in the second quarter. Strong tourist arrivals and the NAIA Expressway have brought in more Chinese and Filipino mass customers from cities outside of Manila respectively.

The NAIA Expressway is a 7.7 kilometer road connecting the Ninoy Aquino International Airport (NAIA) terminals with Skyway, Cavitex and Entertainment City which hosts the casinos. The expressway opened on June 3. The casino industry in the Philippines has been boosted by the new expressway as well as the recent growth in the economy.

Okada Manila had a soft launch in December 2016 but has only recently started offering VIP gaming as construction is still ongoing at the property. Morgan Stanley analysts said that the delay in launching VIP gaming and the disruption from the construction to the mass gambling operations will result in Okada Manila having full gaming operations only from the first quarter of 2018. Okada Manila began operations of its hotel in March with just 100 of 993 hotel rooms ready.

The brokerage firm noted that nearly 30 percent of the casino’s mass market tables were being affected by construction work. By the first quarter of 2018, it is expected that 500 rooms as well as around 20 restaurants will open.

According to analysts Alex Poon and Praveen Choudhary, Okada Manila is likely to add gaming revenue of $ 1.2 billion to the market by 2019, which will give the casino a 32 percent market share beating established rivals like Melco Resorts Philippines, Bloomberry and Resorts World Manila.

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Trump Company Could Be Entering Macau’s Casino Industry

Trump Company Could Be Entering Macau’s Casino Industry

A company belonging to The Trump Organization is said to have applied for four new trademarks in Macau according to a local news report.

The applications relating to the Trump brand were made by a Delaware-based company called DTTM Operations LLC and covered a wide range of activities including gambling and casino services, hotel services and real estate services.

The new applications are similar to those filed by the Trump company in 2006 which had been granted but lapsed earlier this year.

Although there are no Trump-branded operational businesses currently in Macau, the applications suggest the possibility of The Trump Organization wanting to start operations in the biggest gaming hub in the world.

This however highlights the ethical complications arising from the fact that Donald Trump is the President of the United States and his companies continue to operate under the Trump brand. This conflict of interest has posed serious concern to ethics lawyers and the opposition party.

The applications also are likely be a concern for Macau’s six gaming operators who are expected to renew their gaming licenses in 2020. There is no official indication that Trump wants to enter Macau’s casino industry but since one of the trademarks has to do with gaming in Macau, it has given rise to speculation.

Since Trump took over as the president, China has approved several Trump trademarks applications. There are lawsuits ongoing in the U.S. right now which allege that China’s approval for the trademarks can be considered gifts from a foreign government, which is a violation under the U.S. Constitution.

In their response Trump and his lawyers have said that the trademarks are crucial protection against squatters who might exploit his name. Chinese authorities have said that they have so far been fair and impartial in handling the trademark applications with respect to Trump’s and his daughter Ivanka Trump’s businesses.

There has been little information available on the approval process for the renewal of gaming licenses in Macau. Most industry analysts expect the current six operators to retain their licenses but there is speculation that an additional license may be issued as well.

Alex Bumazhny, a gambling analyst at Fitch Ratings said that it was a long shot for Trump’s organization to win a license. According to him recent comments by the city’s gaming regulators indicate that the fresh license would go to a non-U.S gaming company.

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Gambling Industry Betting on Trump’s Support

Gambling Industry Betting on Trump’s Support

donald-trumpAs the first-ever United States president to have owned the casino, the president-elect Donald Trump has got gambling operators keeping their fingers crossed hoping his administration will help the industry.

American Gaming Association, a leading one in the gambling industry feels that increased mainstream acceptance of gambling in combination with the presidential elections results will represent a major opportunity for the gambling community to push forward its key goals.

Internet gambling, sports betting and daily fantasy sports remain the biggest issues in American gambling business and industry is wondering how Trump’s administration will handle those issues, hoping that Donald Trump will be in favour of adopting fewer regulations and approval of sports betting.

President-elect is expected to impose a tax reform and improve immigration policies which would not dry up the inflow of overseas gamblers – and employees – to U.S. casinos.

As man with good understanding of how the gambling industry works, Donald Tramp is regarded as a favourable person to solve the ongoing issues much to the satisfaction of the operators.

The American Gaming Association is making concrete moves towards securing their position with the new American president, by already sending him a memo which provides an overview on the industry’s evolution and a listing of top priorities on a federal level.

In addition to aforementioned burning issues, tribal gaming and Yucca Mountain were also added to the gambling wish list sent to the president-elect.

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