The Philippine Gambling Industry: On Track for a Record $6.03 Billion Revenue in 2024

The Philippine gambling industry is undergoing a remarkable transformation, with projections suggesting that revenues will soar to unprecedented heights in 2024. According to Alejandro Tengco, the Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR), revenues are expected to exceed PHP 350 billion (approximately USD 6.03 billion). This forecast indicates a striking 23% increase from the gross gaming revenue (GGR) of PHP 285 billion recorded in 2023, significantly surpassing PAGCOR’s own target of PHP 334 billion for the upcoming year.

Breaking Revenue Records

During a recent press briefing, Tengco highlighted the anticipated surge in GGR: “Our GGR for the year, I think it’s over 350 billion pesos.” The GGR is a crucial industry indicator reflecting the total amounts wagered by players minus their winnings, thus providing insights into the overall health and profitability of the gambling sector. Such robust figures are particularly vital for the Philippines, as PAGCOR allocates a significant portion of its earnings to bolster the national budget. With operations directly under the office of the Philippine president, PAGCOR plays a pivotal role in funding public services and infrastructures.

One driving force behind this extraordinary growth is the rapid expansion of electronic gaming platforms, which encompass popular offerings such as eCasino, eBingo, sports betting, and various specialty games. In PAGCOR’s latest quarterly report, the numbers reveal a remarkable increase in Q3 2024’s GGR, which reached PHP 94.6 billion, a rise of 37.5% compared to the same period in 2023, and 6% higher than the previous quarter.

The Role of Casino Resorts

Manila, often likened to a smaller version of Las Vegas, is significant to this growth trend, thanks to its bustling casino resorts that attract affluent players from across Asia. High rollers from markets including China, Japan, and South Korea are drawn to these integrated resorts, boosting tourism revenues alongside gaming profits. Renowned operators such as Universal Entertainment Corp and Melco Resorts & Entertainment play a major role in attracting international visitors, which in turn supports the overall growth of the sector.

Structural Overhaul: The POGO Ban

While the Philippine gambling industry celebrates its financial successes, it also stands on the brink of a crucial structural overhaul. PAGCOR is preparing to finalize a nationwide ban on Philippine Offshore Gaming Operators (POGOs) by the end of 2024, aligning with directives issued by President Ferdinand Marcos Jr. during his State of the Nation Address. Tengco commented, “From 48, as of November 30, we’re down to about 13, and by December 15 … it will be zero.” He underscored that any POGO still operating beyond January 1, 2025, will be deemed illegal.

This decision follows escalating concerns regarding illegal activities associated with POGOs, including human trafficking, kidnapping, and various types of fraud, such as cryptocurrency scams. The POGO industry, which began flourishing in 2016 under the Philippines’ relatively lenient regulations, primarily targeted customers from China, where gambling remains prohibited. In recent years, increasing reports of crimes linked to POGOs have amplified domestic and international pressures to shut them down.

The impending crackdown aims to restore public trust and lay the groundwork for a regulated and secure gambling environment. Although the ban may result in short-term revenue losses, PAGCOR expresses optimism about the industry’s long-term stability, driven by legitimate gaming segments such as electronic gaming and integrated resorts.

Conclusion: A Bright Future Ahead

With Manila’s continued ability to attract international tourists and high-stakes players, the Philippines is solidifying its reputation as a leading gambling hub in Southeast Asia. As revenues are projected to exceed PHP 350 billion this upcoming year, the industry’s future looks promising. With the combination of innovative gaming platforms and high-quality integrated resorts, the Philippine gambling industry is not only on track to break records but also to evolve into a more secure and regulated entity that can withstand the tests of time.

The road ahead may face challenges, yet the Philippine gambling industry stands resilient, poised for growth and transformation in 2024 and beyond.