The Philippines gaming industry has reported impressive revenue growth for the first half of 2024, with a 19.2% increase year-on-year, reaching Php194.7 billion (US$3.34 billion). This surge has been largely driven by the rapid expansion of the online gaming sector, which includes E-Games, E-Bingo, and other bingo grantees.
According to the Philippine Amusement and Gaming Corporation (PAGCOR), the E-Gamessector achieved a remarkable performance, with its gross gaming revenue (GGR) more than tripling to Php63.01 billion (US$1.08 billion) in the first half of the year. This unprecedented growth highlights the sector’s domestic-driven success.
Land-Based Casinos and PAGCOR’s Performance
Licensed casinos, including those in Entertainment City and regional locations such as Clark and Cebu, remained the largest contributors to GGR, generating Php99.2 billion (US$1.70 billion). However, PAGCOR-operated casinos experienced an 11.6% decline in GGR, amounting to Php8.9 billion (US$152 million).
Despite the mixed performance across different segments, PAGCOR’s overall net income saw a significant increase of 121.5%, reaching Php6.56 billion (US$112 million), up from Php2.96 billion (US$50.7 million) in the same period last year. This robust income growth allowed PAGCOR to remit Php31.8 billion (US$545 million) to the national treasury in the first six months of 2024, compared to Php22.6 billion (US$387 million) during the same period in 2023.
Online Gaming’s Phenomenal Growth
PAGCOR’s total gross revenues for the first half of 2024 amounted to Php51.8 billion (US$887 million), a 42.9% year-on-year increase. Gaming operations contributed Php45.4 billion (US$778 million) of this total, with nearly half coming from the online gaming sector, which brought in Php20.7 billion (US$355 million).
Integrated resorts and licensed casinos also made a substantial contribution, generating Php16.2 billion (US$277 million) or 35.4% of PAGCOR’s gaming revenues. PAGCOR-operated casinos under the Casino Filipino brand contributed Php6.93 billion (US$119 million) or 15.3%.
PAGCOR Chairman and CEO Alejandro H. Tengco expressed optimism about the future, stating, “Given the phenomenal revenue increase in the E-Games sector, and with more players and investors signifying their intent to enter the Philippine market, we are confident that the year 2024 will be truly a banner year for PAGCOR.”
Reforms and Future Outlook
The gaming revenue growth in the Philippines has been attributed partly to reforms and strengthened regulations under the new administration. PAGCOR’s efforts to channel illegal activity into the regulated market include reducing fees for operators to encourage more businesses to apply for licenses.
Looking ahead, PAGCOR is on track to achieve or exceed Php100 billion (US$1.71 billion) in annual gross revenue for 2024. The regulator’s strategic moves, such as planned privatization of its operations by 2025 to focus solely on regulatory roles, aim to level the playing field for licensees and attract new investment.
Despite the strong performance of the online gaming sector, it continues to face scrutiny and opposition. Senator Joel Villanueva is pushing legislation to ban Philippine Offshore Gaming Operators (POGOs), citing concerns over the sector’s controversies. However, PAGCOR remains committed to ensuring that online gaming activities are conducted legally and responsibly.
Source:
Philippines gaming industry revenue up 19% year-on-year to over US$3.3 billion in 1H24, asgam.com, July 15, 2024.