Melco Considers Online Gaming at City of Dreams Manila

Melco Resorts & Entertainment is considering whether to introduce online gaming operations through City of Dreams Manila, although the company has not made a final decision, according to Seaport Research Partners.

The brokerage believes a digital gaming offering could help the integrated resort maintain its competitive position as competition continues to develop in the Philippine gaming market. Several competing casino resorts already operate online platforms alongside their land-based businesses.

Seaport's comments followed discussions between Melco management and the brokerage during Seaport's 2026 Annual Summer Conference. Senior analyst Vitaly Umansky detailed the meeting in a report released on Thursday.

City of Dreams Manila Previously Operated Live Shots

City of Dreams Manila previously offered an online gaming service under the Live Shots brand. The resort began making its live casino games available online on August 10, 2021, after receiving the required licences from the Philippine Amusement and Gaming Corporation, PAGCOR.

Online slot machines were added to the offering on September 15, 2021. The service was restricted to customers registered within the Philippines.

In December 2021, Melco announced that Live Shots would be temporarily suspended for maintenance. The platform did not resume operations, and by July 2025, City of Dreams Manila no longer offered an online gaming service.

Competition and E-Gaming Tax Changes

Several rival integrated resorts in the Philippines already operate online gaming platforms for eligible domestic customers, including Solaire Resort, Okada Manila and Newport World Resorts.

The competitive environment has also evolved alongside changes to the share of online gaming revenue collected by PAGCOR. In January 2025, PAGCOR reduced the percentage charged to integrated resorts' e-games operations to 25%.

This rate is lower than the 30% charged to other licensed e-games operators. The revised structure affects the operating environment for integrated resorts that are considering or already offering online gaming services in the Philippines.

An online gaming operation at City of Dreams Manila would therefore place the resort alongside several of its competitors with existing digital offerings. Seaport said such a move could improve the property's competitive position, although Melco has yet to announce a final decision.

City of Dreams Manila Outlook Considered Stable

Seaport said the outlook for City of Dreams Manila remains stable despite increasing competition across the Philippine gaming sector. The brokerage also indicated that Melco could still consider selling its interest in the property if it received an acceptable valuation.

Earlier this year, Melco concluded its formal review of strategic alternatives for City of Dreams Manila after determining that the options available at the time would not fully reflect the property's value.

Strategic Sale Review Began in 2025

Melco launched the strategic review in February 2025 as part of its move towards a more asset-light business model. The company later held discussions with potential buyers but did not reach an agreement.

According to Seaport, the conclusion of the review does not rule out a future sale should an acceptable valuation become available. At the same time, the brokerage's comments suggest Melco is continuing to assess options that could strengthen City of Dreams Manila's market position, including a possible online gaming operation.

Melco Continues to Assess Its Options

Melco is currently evaluating the potential for online gaming at City of Dreams Manila, with no decision having been announced. The resort's previous Live Shots platform remains inactive, and the company has not confirmed whether a new online gaming service will be introduced.

Seaport said a digital offering could enhance the resort's competitiveness, while a potential sale of the property could remain possible at the right valuation. Both options remain under Melco's consideration as it assesses the property's market position and value.