The Philippine Amusement and Gaming Corporation (PAGCOR) recently disclosed the gross gaming revenue (GGR) for 2023, reaching an impressive Php285.27 billion ($5.09 billion). This marked a remarkable 33.1% surge from the previous year’s Php214.33 billion and set a new record, surpassing even the figures reported in 2019. The post-Covid recovery in the Philippines has proven to be robust, outpacing the rebound observed in Macau. Although Macau exhibited higher year-on-year growth, soaring by 334% from 2022, it still fell short of pre-Covid levels. Despite this, the positive trajectory in both markets signals a strong resurgence from the impact of the pandemic.
Philippine Gaming Landscape:
In the Philippines, integrated resorts emerged as the primary contributor to the remarkable GGR, totaling Php207.48 billion in 2023. Following closely were electronic games, generating Php58.16 billion. PAGCOR’s Chairman and CEO, Alejandro Tengco, expressed satisfaction with the industry’s performance, stating, “Our 2023 results exceeded even our most optimistic projections and prove beyond doubt that the Philippine gaming industry has fully recovered and is now poised for sustained growth in the medium- to long-term.”
Comparative Analysis with Macau:
While Macau exhibited a substantial year-on-year growth of 334% in 2023, the gross income of MOP$183.1 billion (US$22.7 billion) remained below pre-Covid levels. In 2019, Macau reported cumulative gross income of MOP$292.5 billion, indicating a 37.4% shortfall in 2022. The juxtaposition of the Philippine and Macau markets underlines the resilience and rapid recovery of the former, even surpassing pre-pandemic figures. Both markets, however, demonstrate a positive trajectory indicative of post-Covid rejuvenation.
Asian Market Expansion:
The growth observed in both the Philippine and Macau gaming markets aligns with broader trends in the Asian gaming industry. Japan’s inaugural casino in Osaka and Mohegan’s Inspire venue in South Korea, poised to receive its gambling license, signify the continued expansion and diversification of the Asian gaming landscape. These developments further solidify the region’s role as a key player in the global gaming arena.
Projections for 2024:
Looking ahead, PAGCOR projects continued growth in 2024, with an estimated GGR of Php336.38 billion. Chairman Tengco outlined the expected contributions from licensed casinos situated in Entertainment City, Metro Manila, Clark, Cebu, and the Fiesta Casinos in Rizal and Poro Point, projecting a substantial Php256.63 billion. Additionally, PAGCOR anticipates the e-games sector, encompassing online casinos, bingo, and sports betting, to generate Php61.75 billion in 2024.
The Philippine gaming industry’s stellar performance in 2023, surpassing pre-Covid levels, underscores its resilience and adaptability. The comparative analysis with Macau provides valuable insights into the unique trajectories of these markets, both on the path to recovery. With promising projections for 2024 and ongoing developments in the broader Asian gaming landscape, the future looks bright for the Philippine gaming sector, positioned for sustained growth in the medium to long term.