Philippines Regulator Expects Record Revenues For 2024

According to Alejandro Tengco, the chairman and chief executive of the Philippine gaming regulator, the nation’s gross gaming revenue (GGR) is expected to reach PHP336.38 billion (US$6.03 billion) in 2024, setting a new record for the industry.

Over the past decade, the Philippine gaming industry has experienced significant development, attracting both local and international players. The industry encompasses a wide range of gaming activities, including casino operations, online gaming, and electronic gaming. The Philippine Amusement and Gaming Corp (Pagcor), the regulatory body overseeing the sector, plays a crucial role in ensuring fair and responsible gaming practices.

While electronically-delivered gaming is expected to contribute PHP61.75 billion to the 2024 GGR, traditional casino operations remain the primary revenue driver. Licensed commercial-sector casinos, such as those in Entertainment City in Metro Manila, Clark, Cebu, Rizal, and Poro Point, are projected to contribute as much as PHP256.63 billion to the overall GGR in 2024. These integrated resorts have become major tourist attractions, offering a wide range of entertainment options apart from gambling.

“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,” says Mr. Tengco.

The Philippine gaming industry faced a setback due to the Covid-19 pandemic. Public health-related limitations on movement and inbound tourism led to a decline in gaming revenues. However, the industry has exhibited resilience and has managed to bounce back. The projected GGR for 2023 is expected to be PHP285.27 billion, marking an 11.2% increase compared to the previous record set in 2019.

Several factors contribute to the growth of the Philippine gaming industry and its ability to surpass previous revenue records. Let’s explore some of the key drivers behind this remarkable expansion:

Integrated resorts have emerged as the cornerstone of the Philippine gaming industry. These large-scale developments offer a diverse array of entertainment options, including casinos, hotels, shopping malls, and convention centres. Visitors are drawn to the all-in-one experience provided by these resorts, which contributes significantly to the industry’s revenue. In 2023, integrated resorts accounted for PHP207.48 billion of the total GGR.

The rise of electronically-delivered gaming has transformed the landscape of the Philippine gaming industry. Online casinos and gaming platforms have gained immense popularity, attracting a new generation of players who prefer the convenience and accessibility offered by digital platforms. In 2023, electronically-delivered gaming is expected to contribute PHP58.16 billion to the overall GGR.

The Philippine gaming industry’s success can be attributed, in part, to the strict regulatory measures enforced by Pagcor. The regulatory body ensures that all gaming operations adhere to ethical and responsible practices, promoting fair play and consumer protection. By maintaining a transparent and accountable framework, the industry has gained the trust of both local and international players, contributing to its steady growth.

The Philippine government recognizes the potential of the gaming industry as a catalyst for tourism and economic growth. Significant investments have been made to develop infrastructure, improve transportation networks, and promote the country as a premier gaming destination. The establishment of Entertainment City in Metro Manila and the expansion of gaming venues in other regions demonstrate the government’s commitment to fostering the industry’s growth.

With the Philippine gaming industry poised for sustained growth, it presents new opportunities for investors, operators, and players alike. The projected GGR of PHP336.38 billion in 2024 reflects the industry’s potential to reach new heights. As the industry expands, more job opportunities will be created, contributing to the overall growth of the economy.

“The future of the Philippine gaming industry looks promising,” says Mr. Tengco. “We have witnessed the industry’s resilience and ability to adapt to changing circumstances. With the right strategies in place, we can continue on this trajectory of growth.”