The gaming industry in the Philippines is undergoing a transformative period, with growth opportunities expanding beyond Metro Manila. At the SiGMA Physical Supplier VIP Reception in Incheon, South Korea, Evan Spytma, CEO of Casino Plus and Stotsenberg Hotel, shared his insights on physical gaming, online integration, and the trends in the Philippine gaming industry during an exclusive interview with SiGMA News.
While Metro Manila remains the competitive hub for Philippine Inland Gaming Operators (PIGOs) and traditional casinos, Spytma believes there is significant potential for expansion beyond the capital.
"If you look at the most competitive markets, there is still room for growth. A good example is the recently opened Solaire [Resort] North outside of Entertainment City, which is a beautiful property," he said, adding that achieving success in such a saturated area demonstrates the possibility of further development nationwide. Solaire Resort North, a property of Bloomberry Resorts Corporation, is located north of Metro Manila in Quezon City and opened in May this year.
"If you can succeed in a place like Metro Manila, then there are plenty of opportunities elsewhere in the Philippines."
Integration of Physical and Online Gaming
Spytma told SiGMA News that Casino Plus has adjusted its strategy by integrating online gaming with physical operations. He explained how this approach has opened doors for new player demographics.
"Traditionally, physical casinos focused on creating beautiful spaces to attract players, but with the rise of online gaming, we had to shift this model. Now, our physical casinos are the foundation of our online platforms," he said. This strategy allows the casino to reach a growing player base of 12 to 13 million users, providing them with comprehensive technical and management support without additional costs.
Attracting the Mass Market through Slot Machines
Casino Plus's key advantage is its focus on slot machines, which are a mainstay for the local mass market. Spytma attributed their popularity to an understanding of Filipino player preferences.
"Our slot machines are very popular. The main reason is our jackpots," he said. Casino Plus focuses on offering frequent payouts and larger jackpots, with game designs specifically tailored to Filipino players' tastes. "The math is right, the art is right, and next is to have enough slot machines to maintain the momentum," Spytma noted.
Seamless Online Integration
Casino Plus's highlight is its seamless integration of physical operations with its online platform, crucial for expanding its player base. "A major advantage of having an online platform is the ability to track customer behavior in detail," Spytma stated. This data-driven approach helps optimize the gaming experience, allowing the company to tailor its products to different player demographics.
Attracting International Tourists through Strategic Location
Casino Plus also targets international tourists, particularly from South Korea, which is the largest source of foreign tourists to the Philippines. Its casino is located near the expanding Clark International Airport, benefiting from direct flights to and from South Korea.
However, the proximity to the airport also presents challenges. "It's a geographical advantage, but at the same time, it has limitations. Our land area is limited, and we cannot expand because the airport is right next door," Spytma said, adding that this forces the company to be more efficient in utilizing its existing space.
Integration of E-Wallets and the Future of Digital Finance
The rise of e-wallet platforms like GCash and Maya is another significant development for Casino Plus. Spytma considers these platforms crucial for the company's future, as they are widely used and offer convenient payment methods.
"These e-wallets are undoubtedly one of our biggest customers online because they make payments very convenient," he commented. Looking ahead, Spytma expects e-wallets to evolve into super apps, offering more than simple transactions, such as predictive analytics and improved fraud detection.
According to the 2023 report on electronic payments by the Bangko Sentral ng Pilipinas (BSP), the proportion of digital payment transactions in Philippine retail payments grew from 42.1% in 2022 to 52.8% in 2023.
Impact of the POGO Ban and Future Challenges
Despite the positive outlook, Spytma also acknowledged the challenges brought about by recent actions of the Philippine government against Philippine Offshore Gaming Operators (POGO). Last July, Philippine President Ferdinand Marcos Jr. announced a complete ban on POGO by the end of the year, citing its operations' links to crimes such as human trafficking and money laundering.
Spytma expressed concern about the potential impact of POGOs shifting to the local market as PIGOs, which could lead to increased marketing costs for domestic casinos. "If POGOs turn into PIGOs, that means marketing costs will skyrocket," Spytma warned. Nevertheless, he remains optimistic about the long-term growth of the Philippine market, especially in the online gaming sector.
