The Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR), Alejandro H. Tengco, recently expressed optimistic expectations for the local gaming industry in 2024. Anticipating record-breaking gaming revenues of approximately Php336.4 billion (US$6 billion), Tengco attributes this forecast to the opening of new integrated resorts and the flourishing eGames sector.
Stellar Performance in 2023:
In a press conference on Monday, Tengco highlighted the remarkable growth experienced by the gaming industry, showcasing a 11.2% increase in Gross Gaming Revenue (GGR) to Php285.3 billion (US$5.1 billion) in 2023. These results surpassed even the most optimistic projections, signaling a robust recovery and setting the stage for sustained growth in the medium-to-long term.
Contributors to Gaming Revenues:
Breaking down the sources of gaming revenues, Tengco revealed that integrated resorts played a pivotal role, contributing Php207.5 billion (US$3.7 billion) in 2023. Additionally, the eGames sector made a substantial impact, adding Php58.2 billion (US$1.04 billion), while PAGCOR-operated casinos under the Casino Filipino brand contributed Php19.62 billion (US$352 million).
Projections for 2024:
Tengco provided insights into the expected contributions to the 2024 GGR, projecting that licensed casinos from key locations such as Entertainment City, Metro Manila, Clark, Cebu, and the Fiesta Casinos in Rizal and Poro Point could contribute as much as Php256.63 billion (US$4.6 billion).
Support for Philippine Offshore Gaming Operators (POGO) Industry:
Despite ongoing discussions about the Philippine Offshore Gaming Operators (POGO) industry, Tengco reiterated his support for the sector, now referred to as International Gaming Licensees (ILG) under a revised framework introduced in the previous year. He emphasized the challenges of shutting down an industry that employs nearly 70,000 Filipinos and occupies a significant physical footprint of 625,000 square meters.
Regulatory Measures for ILGs:
Tengco acknowledged the regulatory changes introduced in 2023 for ILGs, including a minimum authorized capital of Php100 million (US$1.8 million) with a paid-up capital requirement of Php25 million (US$448,000). The licenses are valid for two years, applicable to a single specified location with a maximum floor area of 25,000 square meters.
ILG Industry Resilience:
Despite the challenges faced by the ILG industry, it has shown resilience and growth. Revenues increased from Php2.9 billion (US$52 million) in 2022 to Php5 billion (US$90 million) in the previous year. Tengco emphasized the valuable contribution of ILGs to the national economy and recognized the complexities associated with contemplating a complete shutdown.
The Philippines gaming industry, under the leadership of PAGCOR, is poised for substantial growth in 2024. The positive trajectory observed in 2023, coupled with strategic projections and regulatory considerations, paints a promising picture for the industry’s continued success. As the landscape evolves, finding a balance between sustaining growth, regulatory oversight, and industry resilience remains crucial for ensuring the long-term prosperity of the Philippine gaming sector.