Due in large part to the explosive expansion of online gambling, the Philippine gaming industry is poised to surpass its 2023 gross gaming revenue (GGR) record. GGR is predicted to reach PHP350 billion ($6 billion) by the end of 2024, well above the government’s initial estimate of PHP334 billion and much higher than PHP285 billion in 2023.
This pattern is supported by data from the Philippine Amusement and Gaming Corporation (PAGCOR). The gaming industry saw a 37.52% year-over-year increase in GGR in the third quarter of 2024, hitting PHP94.61 billion as opposed to PHP68.79 billion in the same period in 2023. Alejandro Tengco, the chairman and CEO of PAGCOR, attributed this boom to electronic gaming, which grew by an astounding 464.38% in only one year, from PHP6.32 billion to PHP35.71 billion.
Tengco stated, “This impressive performance is a strong indication that the use of modern technology and mobile gadgets in gaming and amusement will continue to play a pivotal role in shaping the future of gaming.”
Challenges Despite Rapid Growth
While online gaming dominates the market, analysts caution that the surge may not last. Morgan Stanley highlighted that PAGCOR’s aggressive issuance of licenses, coupled with reduced licensing fees, contributed to the revenue spike. Over 1,000 iGaming sites were licensed in 2023, with more applications pending approval. PAGCOR’s policies are fueling expansion, but the sustainability of this growth remains uncertain.
Tengco acknowledged these policy-driven changes, saying, “Because of the policy changes implemented by the current management, there was a considerable increase in gaming sites.”
The Philippines’ gaming landscape faced a major shift with the exit of Philippine Offshore Gaming Operators (POGOs). Once a key player in the industry, POGOs became entangled in scandals involving kidnapping, money laundering, and other crimes. President Ferdinand Marcos Jr. ordered their shutdown, with operations mandated to cease entirely by December 31, 2024.
Despite this upheaval, the gaming sector has thrived. PAGCOR confirms that only a few POGO operations remain, signaling a stable future focused on domestic and regulated online gaming activities.
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