Hong Kong’s International Entertainment Corporation is making some serious moves in Manila, and their latest PHP1.05 billion ($18.6 million) Phase 2 construction contract with Kimberland Construction Inc. is just the tip of the iceberg. Signed on May 30th, 2025, this deal represents the continued transformation of IEC’s New Coast Hotel & Casino complex into what promises to be a major player in the Philippines’ red-hot gaming scene.
IEC’s Ambitious Manila Vision Takes Shape
The partnership between New Coast Leisure, Inc. (NCLI) – IEC’s local subsidiary – and the independent Philippine contractor Kimberland Construction marks another significant milestone in what’s shaping up to be one of the most ambitious casino development projects in Southeast Asia. The scope is impressive: complete design, construction, furnishing, and upgrading of the ground and third floors of the casino, plus a comprehensive overhaul of guest rooms and common areas throughout the hotel complex.
What makes this particularly interesting is the tight timeline – everything needs to be wrapped up by the end of 2025, with some pretty hefty penalties (up to 10% of the contract value) if things run late. That kind of deadline pressure suggests IEC is eager to capitalize on the Philippines’ gaming boom as quickly as possible.
This Phase 2 contract builds on the momentum from the Phase 1 agreement signed back in February 2025, and it’s all part of IEC’s much larger renovation strategy that was first announced in September 2023. The company has committed to investing between $1 billion and $1.2 billion into this integrated resort project – a massive bet on the Philippines market that reflects both the opportunity and the competition heating up in the region.
The Philippines Gaming Gold Rush
IEC’s timing couldn’t be better. The Philippine Amusement and Gaming Corporation (PAGCOR) just reported absolutely stunning numbers for 2024 – a record-breaking gross gaming revenue of PHP372.33 billion (US$6.5 billion), representing a whopping 30.52% increase from 2023. To put that in perspective, the industry has bounced back stronger than ever from the pandemic slump, and it’s showing no signs of slowing down.
The real kicker? PAGCOR Chairman Alejandro Tengco is predicting the industry will double its revenue by 2028, with expectations of hitting anywhere from PHP450 billion to PHP500 billion in the next few years. That’s the kind of growth trajectory that gets Hong Kong investors very excited, and it explains why IEC is willing to put over a billion dollars on the table.
What’s driving this explosive growth? It’s a perfect storm of factors. The Philippines has become a magnet for high-rolling tourists from China, Japan, and South Korea, and the government has been steadily improving foreign travel guidelines to make it easier for these big spenders to visit. Meanwhile, the local gaming market has proven incredibly resilient and continues to expand.
Gaming Capacity Expansion and Technology Integration
The renovations at New Coast Hotel & Casino aren’t just about making things prettier – they’re about serious capacity expansion. The plan is to boost the casino’s gaming tables from 80 to over 110, while slot machines will jump from 500 to more than 920 units. That’s nearly doubling the slot capacity, which makes sense when you consider how popular electronic gaming has become.
Speaking of electronic gaming, this is where things get really interesting from a technology perspective. The e-Games and e-Bingo sector in the Philippines absolutely exploded in 2024, surging by 165.66% to reach PHP154.51 billion. This segment now accounts for 41.51% of total gaming revenue, and PAGCOR estimates it could climb to PHP160 billion in 2025. That’s not just growth – that’s a fundamental shift in how people want to gamble.
IEC’s renovations are clearly designed to capitalize on this trend. The company is planning to add a sports bar to attract younger customers, recognizing that the gaming demographic is evolving. Modern gamblers want more than just traditional table games and slot machines – they want an entertainment experience that includes dining, socializing, and yes, sports betting and electronic gaming options.
The location strategy is also smart. While New Coast Hotel isn’t in Manila’s main resort district, IEC’s executives believe it’s well-positioned to attract a diverse customer base. Given the explosive growth in electronic gaming, being slightly outside the main tourist zone might actually be an advantage for attracting local players who are driving much of the e-gaming boom.
Southeast Asia’s Gaming Landscape Heats Up
IEC’s major investment comes at a time when Southeast Asia’s gaming landscape is becoming increasingly competitive. The Philippines isn’t just competing against traditional gaming destinations – it’s racing against time to establish itself before major new players enter the market.
Japan is constructing sprawling casino complexes that will compete directly for the high-roller Asian market, while Thailand is actively planning to legalize gambling. This regional competition is driving a mini arms race in casino development, with at least six new gaming facilities worth roughly $3 billion in the pipeline across the Philippines. For Hong Kong companies like IEC, the Philippines represents an attractive alternative to the increasingly challenging business environment in their home market. The company has explicitly stated its intention to hunt for more local investment options rather than expanding overseas, suggesting that the Philippines could become IEC’s primary growth market going forward.
The regulatory environment in the Philippines has also become more favorable for operators. PAGCOR has been transitioning from operating its own casinos to focusing on regulation, creating opportunities for private operators like IEC to step in. The fact that Casino Filipino New Coast was previously operated by PAGCOR itself shows how this transition is creating new business opportunities.
The Electronic Gaming Revolution
The most dramatic trend reshaping Philippine gaming is the rise of electronic gaming platforms. The numbers are staggering – e-Games revenue jumped from PHP58.16 billion in 2023 to PHP154.51 billion in 2024. PAGCOR Chairman Tengco believes this trend will continue, with e-Games potentially matching land-based casino revenue within the next two to three years.
This shift reflects broader changes in gambling preferences, particularly among younger demographics. Electronic gaming offers convenience, variety, and often lower minimum bets than traditional casino games. It’s also more accessible to local players who might not be comfortable in high-end casino environments.
To support this growth, PAGCOR even lowered remittance rates for betting platforms from 35% to 30% in January 2025, making it more attractive for operators to invest in electronic gaming infrastructure. This regulatory support, combined with surging demand, creates a compelling business case for the kind of comprehensive renovations IEC is undertaking.
The integration of sports betting and electronic gaming options into traditional casino environments represents a hybrid approach that could define the future of Philippine gaming. IEC’s plan to add a sports bar isn’t just about food and drinks – it’s about creating an environment where traditional gambling, sports betting, and electronic gaming can coexist and cross-pollinate.
Market Dynamics and Competition
IEC’s billion-dollar commitment positions the company to compete with established players in the Philippine market. The industry already includes four major integrated resorts in Manila, but the market appears large enough to support additional high-quality operators.
The competitive landscape is being shaped by both domestic and international factors. Locally, the continued growth of the Filipino middle class is creating a larger base of potential customers. Internationally, the flow of tourists from China, Japan, and South Korea provides a steady stream of high-value customers who are familiar with Asian-style gaming.
IEC’s approach of focusing on both traditional casino gaming and emerging electronic formats positions the company well for this evolving market. The company’s decision to pursue both equity and debt financing for its Philippine projects suggests confidence in the long-term prospects of the market.
The timing of IEC’s expansion also coincides with the Philippine government’s broader economic development goals. Gaming revenue has become a significant source of government funding for social programs, creating an alignment between private investment and public policy that bodes well for the industry’s continued growth.
Future Market Projections and Industry Outlook
The outlook for Philippine gaming remains exceptionally bullish. PAGCOR’s projection of 17% growth in 2025, potentially reaching PHP450-480 billion in gross gaming revenue, suggests the industry is still in a high-growth phase rather than approaching maturity.
January 2025 numbers support this optimism, with gross gaming revenue reaching PHP40 billion compared to PHP28.5 billion in January 2024. This early momentum suggests that 2025 could indeed deliver the record growth that industry leaders are predicting.
The long-term trajectory appears even more promising. The projection that gaming revenue could double by 2028 reflects several converging trends: continued economic growth in the Philippines, increasing tourism from other Asian countries, and the ongoing digital transformation of the gaming industry. In addition, cryptocurrency-based gambling is also set to rise.
For companies like IEC, this growth environment justifies major capital commitments. The $1-1.2 billion investment requirement that comes with IEC’s gaming license reflects PAGCOR’s confidence that the market can support large-scale developments.
The competitive financing approach IEC is taking – combining internal resources with debt financing – suggests a measured but ambitious approach to market expansion. The company is clearly betting big on the Philippines while maintaining financial flexibility.
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