Philippines Gaming Industry Hits Record-Breaking Revenue: A Tale of Resilience, Expansion, and Regulatory Transition

The Philippines has achieved a historic milestone in its gaming industry by recording a record-breaking ₱285 billion (£4 billion/€4.7 billion/$5.1 billion) in gross gaming revenue (GGR) in 2023, surpassing pre-pandemic levels and marking an impressive 11.2% increase from the previous high set in 2019. This remarkable performance underscores the resilience and adaptability of the Philippine gaming sector. The Philippine Amusement and Gaming Corporation (Pagcor) is optimistic about sustaining this success, projecting a further surge in 2024 with an anticipated GGR of ₱336 billion.

The catalysts for this extraordinary achievement include the strategic openings of new integrated resorts, complementing the existing ones that have been significant contributors to the country's revenue, accounting for ₱207 billion. The planned launch of Solaire North in Quezon City, a resort in Cavite, and developments such as NuStar in Cebu City underline the ongoing expansion and dynamism of the Philippines' gaming market.

Alejandro Tengco, Pagcor Chairman and Chief Executive, expressed confidence in the industry's recovery, stating, “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.”

In a notable development, the Philippines is poised to outpace Singapore in terms of GGR, fueled by its dynamic gaming market and continued industry expansion. The Philippines distinguishes itself in the Association of Southeast Asian Nations (ASEAN) region by allowing citizens unrestricted access to casino gaming, with local players playing a pivotal role in the sector's growth.

Beyond physical casinos, the Philippines boasts the unique position of having the only regulated online gaming market in Asia. While offshore gaming dominates the spotlight, there are indications of potential expansion in domestic online play. Pagcor's modernization program, including the introduction of 3,000 new slot machines and plans for modernizing table games, aims to not only boost revenue but also enhance the gaming experience.

Adding to the industry landscape is Pagcor's upcoming online platform, Casinofilipino.com, set to go live in Q1 of 2024. This initiative aligns with the broader trend of embracing online gaming platforms.

The surge in gaming revenue aligns with Pagcor's strategic announcement of transitioning into a regulatory role, stepping back from direct gambling operations. The move towards privatization is positioned as a means to "level the playing field" and foster growth for other operators in the market. Pagcor envisions completing the transition to a purely regulatory role by 2025, emphasizing plans to minimize the impact on staff during this transition.

The impressive trajectory of the Philippines' gaming sector not only signals a promising future domestically but also positions the country as a key player within the broader ASEAN region. Economic growth, coupled with the dynamic dynamics of the gaming market, is expected to continue evolving, presenting opportunities for sustained success and development in the years to come.

By fLEXI tEAM