The Chairman and CEO of Philippines gaming regulator PAGCOR said he expects the local industry to generate record gaming revenues of around Php336.4 billion (US$6 billion) in 2024, boosted by the opening of new integrated resorts and the growth of the eGames sector.
Speaking with media on Monday, Alejandro H. Tengco explained that the growth experienced by the industry in recent years – with GGR rising 11.2% to Php285.3 billion (US$5.1 billion) in 2023 – would continue into the future with recent figures having exceeded even PAGCOR’s expectations.
“Our 2023 results exceeded even our most optimistic projections, and it proves beyond doubt that the Philippine gaming industry has fully recovered and is now poised for sustained growth in the medium-to-long-term,” Tengco said, as reported by the Manila Bulletin.
“Last year’s accomplishment is solid proof of the local gaming industry’s adaptability and resilience which translates to PAGCOR’s enhanced ability to fulfill our nation-building mandates.”
While the regulator is yet to release its 4Q23 and FY23 financial results, Tengco revealed the nation’s integrated resorts contributed Php207.5 billion (US$3.7 billion) in gaming revenues last year, with the eGames sector adding another Php58.2 billion (US$1.04 billion). PAGCOR-operated casinos under the Casino Filipino brand contributed Php19.62 billion (US$352 million).
“We are projecting that our licensed casinos from the Entertainment City, Metro Manila, Clark, Cebu and the Fiesta Casinos in Rizal and Poro Point will contribute as much as P256.63 billion (US$4.6 billion) to our 2024 GGR,” he said.
Separately, Tengco maintained his support for the Philippine Offshore Gaming Operators (POGO) industry – now known as International Gaming Licensees under new framework introduced late last year – adding that he hoped to issue more IGL licenses “unless I am barred from doing so.”
With the regulator focussed on cleaning up its offshore iGaming industry, Tengco said IGLs still made a valuable contribution to the nation which made heeding calls to shut it all down challenging.
“It’s not easy to (shut down) the industry,” he explained. “There are close to 70,000 Filipinos working in the POGO sector, where will you put them? There are also 625,000 square meters occupied by (industry players).”
While the IGL industry has shrunk considerably since pre-pandemic times, revenues from the sector grew from Php2.9 billion (US$52 million) in 2022 to Php5 billion (US$90 million) last year, Tengco explained.
Under the new regulations introduced in 2023, IGLs must have an authorized capital of at least Php100 million (US$1.8 million), of which P25 million (US$448,000) must be paid up, while all licenses will only be valid for two years. These licenses are only applicable to a single specified location with must have a maximum floor area of 25,000 square meters.
