4. An Exploratory Study on the Casino Industry
in the Philippines for Data Improvement on
the BOP Statistics CompilationsCatanjal, Alyssa Mari G.
BS Business Economics
University of the Philippines-Diliman
6. I. DEFINITION OF TERMS
Chip Purchase Voucher
Electronic Gaming Machine (EGM)
Gross Gaming Revenues
Junket or Chipwashing operation
Junket Player
means a voucher issued by a Licensee to a patron named in the voucher
entitling the patron to be issued with chips of an equivalent value.
means any device, whether wholly or partly mechanically or
electronically operated.
means the total of all sums, including cheques and other negotiable
instruments, whether collected or not, that is received in any month from the
conduct of gaming, less the total of all sums paid out as winnings to casino
players during that month in respect of gaming.
- Foreign-passport holding players
- means table game operations of specific
gaming areas where junket players engage in casino gaming.
Source: Casino Regulatory Manual
7. II. CATEGORY OF PLAYERS
Source: Technavio
Domestic
Players
Foreign PlayersIncreasing
Global economy
8. III. CASINO VALUE INSTRUMENTS
Casino Chips
● “are the most common value instruments that are used in lieu of cash. They
could be issued as “credit chips” for patrons playing on credit or “dead chips”
for junket patrons.”
● “Chips could be bought in cash or on account and redeemed for
cash/cheque/transfer.”
Source: FATF Report
9. III. CASINO VALUE INSTRUMENTS
Sample Transactions
● Chips bought in cash and redeemed for cash
● Chips bought in cash and converted to credit, and transferred in
another jurisdiction where local casino has an affiliated establishment
and credit is redeemed for a cheque.
1
2
● Chips bought on account using a Chip Purchase
Voucher(CPV) and repayment thru
cash/cheque/transfer.
CPV
Source: FATF Report
10. IV. CASINO ACCOUNTS AND FACILITIES
Foreign Holding Account
“Accounts that are held in one jurisdiction by the casino, but the funds can be used to
gamble in another jurisdiction under the same casino group.”
Source: FATF Report
12. V. CASINO REGULATIONS IN THE PHILIPPINES
Tax Rate on
Gross Gaming
Revenues
(GGR)
5% high roller tables and junket operations
15%
non-high roller tables, slot machines,
electronic gaming machines
30% other casino operators
Pagcor Tax Obligations
Tax Rate Account
5% Income from gaming operations
30% Income from Other related services
Source: GamblingCompliance, & ChanRobles
13. 61 Legal Gambling Facilities
Private Casinos11 Pagcor Casinos
45 Satellite Facilities
CASINO INDUSTRY IN THE PHILIPPINES
Source: World Casino Directory & Pagcor
16. P 8.02 billion
608
10,603
Gaming Tables
Electronic Gaming
Machines
P 8.5 billion
Licensed Fees
GGR 2Q 2016
Source: Pagcor records
17. P 17.4 billion
P 1.3 billion
Franchised Tax
Gross Income
P 12.4 billion
Government Share
P 2.5 billion
Net Income
P 8.1 billion
Income Tax
Source: Pagcor records
20. Boost in VIP
Revenues “With more additional VIP tables and SunCity-- Macau’s largest junket operator-- in
action, a boost in VIP revenues is expected to be seen. “
Increase in
Minimum
Bets
“The number of customers winning per table has increased in 2015, which is encouraging
further investments and increases in the minimum bets per table.”
21. “the number of foreign visitors has increased rapidly in 2015, and a major part of it is due to
the growing casino industry.” (Technavio) And also, “the number of foreign visitors who visited the
gaming hub in manila is also reported to be over 67% of a total of 540,600 foreign visitors.”
“The government's involvement, particularly in the form of regulations that bring down
the gambling amounts, is rapidly changing the social stigma around the game. Casino games
are now being seen as more of a leisure activity than something which involves losing money,”
Changes
To
Player
Demographics
Supplement
To
National
Economy
22. VULNERABILITIES OF THE CASINO
INDUSTRY AND ALTERNATIVE METHODS
OF ESTIMATING INTERNATIONAL
TRANSACTIONS
2
23. The Problem
● “Inefficiency of Surveys”
● Data limitations and data gaps
● Casino transactions that do not pass
through the local banking system
○ The use of FHA
○ The use of CPV
Source: “Enhancing the Philippines’ External Sector Statistics through Cross Border Transactions Survey” & FATH Report
27. Attraction 2009 2010 2011 2012 2013 2014
Casinos 35346.8 37619.6 43262.5 51915 60740.6 72281.3
Attraction 2014 2015 2016 2017 2018 2019
Casinos 72281.3 80593.6 88653.0 96188.5 102440.7 108587.2
Total Industry
GGR
no data 133,276 78,223
(2Q)
no data no data no data
Source: Pagcor & Euromontior International from official statistics,trade associations, trade press, company research,
trade interviews, trade sources
30. Proposed Solution
Thus,
>30%
Non-Residents
65%-35%
Residents- Non-Residents
● Gradual opening of the 4 integrated
casinos
○ Boost in VIP revenues
○ Increase in minimum bets
○ Supplement to national economy
○ Changes in player demographics
● Good mix of foreign market
● SunCity fully operational
● Consistent growth in visitor arrivals and
receipts
32. 1. Philippines - Quarterly Gaming Report - 2014Q1 to 2016Q2
“Latest quarterly Gaming Report data from PAGCOR of the Philippines. The data released for the country
contains the following information: Gross gaming revenue from casinos & electronic gaming sites and
installed EGMs & gaming tables by property. There are approximately 120 data points in this document.” (
GamblingCompliance)
2. Casino Gaming Market in the Philippines 2016-2020
“The report covers the present scenario and the growth prospects of the casino gaming market in the
Philippines for 2016-2020. To calculate market size, the report considers revenue generated from online
and brick-and-mortar casinos.” (DigitalJournal)
3. Gambling Industry in Philippines & Gambling Industry Forecast
“These reports cover the gaming industries in various countries but mostly in the Philippines. Statistics
on market size and risk assessment are available on these reports. “(ReportLinker)
34. Works Cited
Aravindan, Aradhana, and Neil Jerome Morales. "For Casinos in Manila's Gaming Strip, More Is Better." Reuters. Thomson Reuters,
01 Mar. 2015. Web. 13 Aug. 2016.
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Aug. 2016. Web. 13 Aug. 2016.
Department of Economic Statistics. Report on Philippine External Debt. Manila: Bangko Sentral Ng PIlipinas, June 2016. PDF.
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PIlipinas, 17 June 2016. PDF.
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Financial Task Force Report. "Vulnerabilities in the Norwegian Banking Sector."Casino Typologies Report (2012): 25-57.
Mar. 2009. Web. 13 Aug. 2016.
35. Works Cited
"Gambling Industry in Philippines." ReportLinker. ReportLinker.com, Dec. 2012. Web. 19 Aug. 2016.
"Gambling Industry-Forecast." ReportLinker. ReportLinker.com, Dec. 2012. Web. 19 Aug. 2016.
Gaming Licensing and Development Department, Ma. Perpetua Flor, Edwin Mendoza, and Rashere Berina. Casino
Regulatory Manual. N.p.: n.p., Feb. 2015. PDF.
GamblingCompliance Research Team. "FAQ: The Gambling Market in the Philippines." Home. GamblingCompliance, 1
Mar. 2016. Web. 13 Aug. 2016.
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36. Works Cited
Leyco, Chino. "Pagcor Income Tops P47B in 2015, up 18%." Manila Bulletin. N.p., 12 Feb. 2016. Web. 13 Aug. 2016.
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20. Press Publisher Online Publishing Syste, 5 Mar. 2009. Web. 13 Aug. 2016.
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Journal. Digitaljournal, 7 Nov. 2016. Web. 19 Aug. 2016.
Mendoza, Loubelle V. "BusinessWorld: The Rise of the Philippine Casino Industry." Business World Online.
BusinessWorld Publishing Corporation, 20 Apr. 2015. Web. 13 Aug. 2016.
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Corporation, 15 July 2015. Web. 13 Aug. 2016.
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37. Works Cited
"Philippines - Quarterly Gaming Report - 2014Q1 to 2016Q2." GamblingCompliance. GamblingCompliance, 28 July 2016.
Web. 19 Aug. 2016.
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Through 2020, Reports Technavio." Business Wire. Business Wire, 14 Jan. 2016. Web. 13 Aug. 2016.
Technavio. "Key Drivers of the Casino Gaming Market in the Philippines."Technavio. Infiniti Research Limited, 5 July
2016. Web. 13 Aug. 2016.
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Aug. 2016.
Tourism Research and Statistics Division (TRSD), Office of Tourism Planning, Research and Information Management
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