Bloomberry Resorts Corp., operator of Solaire Resorts and Casino, is betting big on online gaming
MANILA, Philippines – Enrique Razon Jr.-led Bloomberry Resorts Corp., the operator of Solaire Resorts and Casino, will have to be “creative and aggressive” in its foray into online gaming if it wants to topple current frontrunner DigiPlus Interactive Corp., according to analysts.
Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said in a text message that Bloomberry’s upcoming online platform “should eventually help mitigate the temporary weakness in its land-based casinos.”
At the same time, however, Colet pointed out that the online gaming scene was dominated by tycoon Eusebio Tanco-led DigiPlus.
“So Bloomberry would have to be very creative and aggressive to attract players,” he said.
This comes after Bloomberry confirmed in its annual report that it was developing a new online platform meant to compete directly with other electronic gaming license holders, including BingoPlus of DigiPlus, one of the industry’s current leaders.
Like its competitors, Solaire accepted bets via online platforms during the COVID-19 pandemic following the approval of the Philippine Amusement and Gaming Corp.
But the new mobile gaming application will be targeted toward a broader audience, according to Bloomberry.
Unicapital Securities Inc. equity research analyst Jeri Alfonso said the company was set to roll out the app in the third quarter of this year.
As a result, its full impact on gross gaming revenues (GGR) will not be realized until 2026, Alfonso noted.
Based on the Bloomberry management’s presentation to analysts, the company expects the online gaming business to contribute around P2.5 billion to P3.7 billion in GGR.
Alfonso said this represented 5 to 7 percent of Solaire Entertainment City’s GGR in 2024, but it would not be enough to overtake the VIP, mass market and slots segment.
“While the app launch should drive growth, [Bloomberry] will likely incur higher opex (operating expenses), especially in promos and marketing,” she added.
Last year, weak demand from the VIP segment and high costs associated with Solaire Resort North caused Bloomberry’s net income to fall by 73 percent to P2.6 billion.
GGR at Solaire Entertainment City alone declined by 9 percent to P53.2 billion. VIP rolling chip volume dipped by 29 percent to P436.1 billion.
It can also be noted that Bloomberry is pursuing an online platform despite the government call to crack down on local online gambling firms.
“It shows they’re (Bloomberry) confident there will be no ban,” Colet said, adding that a total ban would “unduly deprive” the government of “billions of pesos in much-needed revenues.”
“A ban might have the unintended effect of pushing many participants into a black market, which would be worse for everyone. The better approach is to regulate, not eliminate,” he said.