The Philippines casino industry experienced notable fluctuations in Gross Gaming Revenues (GGR) throughout 2023, with the final quarter marking a slight downturn compared to the previous year. Despite this, the sector exhibited resilience, propelled particularly by significant growth in the e-gaming segment.
Overview of Quarterly Performance:
The fourth quarter of 2023 witnessed a marginal decline in GGR for licensed casinos in the Philippines, totaling Php49.7 billion. This dip, although slight, contrasted with the consistent growth observed in previous quarters. Notably, the quarter marked the first time in the year that GGR did not surpass Php50 billion.
Exceptional Performances:
Despite the overall decline, select casinos showcased remarkable resilience and even achieved record-breaking performances. NUSTAR in Cebu, for instance, witnessed a staggering 68.5% increase in GGR, reaching an unprecedented Php1.96 billion. Similarly, Royce Hotel and Casino in Clark experienced a doubling of GGR from Q1 to Q4, amounting to Php1.58 billion. However, these figures still paled in comparison to industry giants like Hann Casino Resort, which generated Php3.0 billion in the same period.
Impact on PAGCOR Casinos:
Even PAGCOR-operated casinos were not immune to the downturn, with a 6.5% sequential decrease in GGR recorded in 4Q23. Despite this setback, the overall industry landscape remained dynamic, fueled by other contributing factors.
Rise of E-Gaming Sector:
One of the most significant drivers of growth in the Philippine casino industry was the exponential expansion of the e-gaming sector. Revenues from e-gaming, encompassing various digital platforms such as e-games, e-bingo, specialty games, and sports betting, skyrocketed by over 100% in the fourth quarter of 2023, amounting to Php25.8 billion. PAGCOR’s projections indicate further substantial growth, with the segment anticipated to exceed Php60 billion in revenues in 2024.
Overall Industry Performance in 2023:
Despite the fluctuations experienced throughout the year, the Philippine casino industry demonstrated resilience, contributing significantly to the country’s economic landscape. Total industry revenue for 2023 amounted to Php285.3 billion, with private licensees, particularly those in Manila’s Entertainment City and Clark, driving more than 70% of this revenue.
The Philippine casino industry navigated through a year of ups and downs, with the fourth quarter of 2023 presenting some challenges in terms of GGR performance. However, amidst the fluctuations, certain casinos showcased remarkable growth, and the e-gaming sector emerged as a powerhouse, propelling the industry forward. As the sector continues to evolve, stakeholders must remain vigilant, adapting to changing consumer preferences and regulatory frameworks to ensure sustained growth and prosperity.