The Philippine Amusement and Gaming Corporation (PAGCOR) anticipates a significant upswing in the E-Gaming sector for the year 2024, building upon the remarkable growth witnessed in 2023. Through strategic policy adjustments, including reduced licensing rates, PAGCOR aims to foster a conducive environment for the flourishing of electronic gaming activities.
Phenomenal Growth in 2023:
In 2023, the Philippine E-Gaming sector experienced a staggering 92% surge in gross gaming revenues (GGR), a testament to its burgeoning prominence within the gaming industry. PAGCOR Chairman and CEO, Alejandro Tengco, underscored this remarkable achievement during a panel session at ICE London, attributing the growth to a series of policy reforms.
Policy Reforms Propelling Growth:
Tengco highlighted the pivotal role of policy reforms in catalyzing the sector’s growth trajectory. Notably, PAGCOR introduced measures such as lowering licensing rates, thereby incentivizing the establishment of more gaming sites. These policy adjustments have contributed to a notable increase in the number of licensed E-Gaming sites across the Philippines, surpassing the 1,000 mark, with a promising pipeline of applications awaiting approval.
Projections for 2024:
PAGCOR projects continued momentum for the E-Gaming sector in 2024, with anticipated GGR reaching Php61.75 billion (US$1.1 billion). This projection reflects a 6.2% increase over the previous year’s GGR of Php58.16 billion (US$1.04 billion). The optimistic outlook underscores the resilience and growth potential of the Philippine E-Gaming industry.
Impact on Revenue Generation:
The remarkable performance of the E-Gaming sector not only propels local gaming industry growth but also significantly contributes to PAGCOR’s revenue generation efforts. The influx of gaming sites, coupled with reduced licensing rates, has bolstered revenue streams, further solidifying the sector’s economic significance.
Future Prospects and Policy Adjustments:
Looking ahead, PAGCOR remains committed to fostering an enabling environment for sustained sectoral growth. Anticipated further reductions in licensing rates for E-Gaming operators in 2024 signal the regulator’s proactive approach to stimulate investment and innovation within the industry. These policy adjustments aim to bolster competitiveness and attract a broader spectrum of stakeholders.
The Philippine E-Gaming sector is poised for continued expansion in 2024, buoyed by favorable policy reforms and a robust growth trajectory. With prudent regulatory measures and strategic initiatives, PAGCOR endeavors to harness the sector’s full potential, driving economic growth and enhancing revenue generation. As the landscape evolves, stakeholders stand poised to capitalize on emerging opportunities within this dynamic gaming ecosystem.