Southeast Asia’s land-based casino sector, including Indonesia’s emerging gambling scene, is facing growing pressure from the region’s booming online gaming industry, according to a recent Morgan Stanley report.
The findings were presented during the bank’s 2025 Virtual ASEAN Conference (May 29–30), where over 40 regional companies participated. The report highlighted that brick-and-mortar casino operators are eyeing a stronger H2 2025, but are increasingly challenged by the rapid rise of online platforms in countries like Indonesia.
Casino Operators Hopeful but Cautious
Morgan Stanley reviewed presentations from three key players: Genting Singapore (GENS), Bloomberry Resorts (Philippines), and Digiplus. Considering the wide recognition of Indonesia as a potential market, the discussions were insightful.
GENS cited market share losses due to prolonged construction at Resorts World Sentosa, including closure of 360 Hard Rock Hotel rooms. It expressed caution about the mass-market segment, pointing to rising operating costs and evolving customer behavior. The company expects a recovery with new attractions — including an oceanarium and Laurus Hotel — launching later in 2025.
However, MS warned that executive reshuffling at GENS could disrupt progress, particularly affecting Indonesia’s market perception.
Online Gaming Takes the Lead
In contrast, online gambling is quickly becoming a dominant force. Bloomberry Resorts sees digital expansion as a way to reach lower-spending players, especially amid VIP stagnation in Entertainment City. The company plans to invest PHP1–2 billion into its digital gaming division.
Still, success is far from guaranteed — only 3–4 out of 57 licensed online operators in the Philippines have gained notable traction, perhaps offering lessons for Indonesia’s potential online market.
Digiplus: A Regional Standout
One of those standouts is Digiplus, which runs online platforms and bingo parlors. It posted Q1 revenue of PHP23 billion ($410 million) and a net profit of PHP4.2 billion ($75 million) — with an 18% margin. Monthly active users reached 7.5 million, averaging PHP1,000 ($20) each. Its stock has surged over 100% in 2025, a success story others aim to replicate in Indonesia.
Indonesia’s Digital Opportunity
While Indonesia currently bans most forms of gambling, its large online population and growing interest in esports and gaming make it a critical market to watch. Regional operators are reportedly eyeing opportunities in Indonesia for potential expansion if regulatory reforms are introduced.
Morgan Stanley’s outlook suggests that ASEAN’s gaming industry — including players in Indonesia — is at a crossroads. The balance between land-based tradition and digital innovation will define the region’s next chapter, with Indonesia playing a key part.
