In a strategic move aimed at boosting the value of its gaming assets, Casino Filipino venues are set to receive a significant upgrade with the addition of approximately 2,000 new slot machines by mid-September 2023. This announcement was made by PAGCOR Chairman and CEO Alejandro H. Tengco during his keynote address at the prestigious IAG Academy Summit held at the Hilton Manila.
Tengco underscored the importance of modernizing PAGCOR’s casino operations as part of a broader strategy to enhance the appeal of the government-operated casinos, which are poised for privatization in the near future. The introduction of new gaming equipment is expected to play a pivotal role in attracting more customers, thereby increasing foot traffic and improving overall profitability across Casino Filipino’s various branches nationwide.
New Slot Machines: Part of a Broader Modernization Program
A total of 3,341 new slot machines have been ordered as part of PAGCOR’s modernization efforts. The first shipment of 1,968 machines is scheduled to arrive in early September, with the remaining units following shortly after. This investment in new gaming technology is seen as a crucial element in the planned privatisation of PAGCOR-operated casinos.
“As we prepare for the planned privatisation of PAGCOR casinos, we intend to increase their value by modernising our gaming facilities and equipment to make them more attractive to potential investors,” Tengco emphasized during his speech at the summit.
The modernization program does not only cover the introduction of new machines but is also part of a larger initiative to enhance the overall gaming experience for customers. This includes upgrading gaming floors, improving customer service, and ensuring that Casino Filipino branches remain competitive in a fast-evolving gaming industry.
Boost in Q2 Gaming Revenues Highlights Industry Growth
PAGCOR’s modernization program comes at a time when the Philippine gaming industry is experiencing significant growth. The most recent financial report for the second quarter (Q2) of 2023 revealed that the country’s gaming revenue reached PHP 89.23 billion (approximately US$1.56 billion). This marks a steady increase in gaming revenues, highlighting the resilience and expansion of the gaming sector in the Philippines.
The surge in gaming revenue underscores the potential profitability of PAGCOR-operated casinos, making the modernization of gaming equipment and facilities a logical step to further capitalize on this growth. Tengco’s remarks at the IAG Academy Summit highlighted the need to maintain this upward momentum by continuing to invest in infrastructure, particularly in gaming technology, to sustain the interest of local and international players.
Privatization of PAGCOR Casinos: A Strategic Move
The upcoming privatization of PAGCOR casinos is a key reason behind the modernization initiative. The government’s plan to privatize state-owned casinos has been discussed for some time, and the recent moves to upgrade gaming facilities are part of a larger strategy to make these properties more attractive to potential investors.
Tengco has reiterated the importance of modernizing both the physical and operational aspects of the casinos to enhance their market value. The installation of new slot machines is seen as a critical part of this effort, as state-of-the-art gaming equipment can significantly increase the perceived value of a gaming venue.
Privatization is expected to introduce new capital into the industry, improving competition and potentially leading to better services and offerings for consumers. By upgrading its casinos in advance, PAGCOR aims to ensure that its venues are in the best possible position to maximize their sale value once the privatization process begins.
The Role of POGOs and the Nationwide Ban
PAGCOR’s modernization program is not the only significant development in the Philippine gaming industry. Recently, the government announced a nationwide ban on Philippine Offshore Gaming Operators (POGOs), which primarily serve clients in the US and the UK. This decision was met with concerns from various sectors, including PAGCOR, which appealed for outsourcing companies serving international markets to be exempt from the ban.
The ban was announced by the Philippine President in July 2023, and its implementation is expected to have wide-ranging implications for the local gaming and outsourcing industries. POGOs have been a significant part of the gaming landscape in the Philippines, providing jobs and generating tax revenue. However, concerns over illegal activities and the social impact of POGOs led to the government’s decision to impose the ban.
In his appeal, Tengco urged the government to spare outsourcing companies that operate POGOs for foreign markets, emphasizing the potential economic consequences of a blanket ban on these businesses. Tengco’s remarks reflect PAGCOR’s concern that the ban could lead to job losses and reduce revenue from the gaming sector at a time when the industry is showing strong growth.
Looking Forward: A Transformative Period for Philippine Gaming
The Philippine gaming industry is currently in a transformative phase, with several key developments that are likely to shape its future trajectory. PAGCOR’s modernization program, the planned privatization of its casinos, and the nationwide POGO ban are all major factors that will influence the gaming landscape in the coming years.
PAGCOR’s decision to invest in new slot machines is an indication that the agency is committed to staying competitive in an increasingly globalized gaming market. By upgrading its facilities and preparing for privatization, PAGCOR is positioning itself for continued growth and success.
The increase in gaming revenues in Q2 2023 also reflects a strong demand for gaming entertainment in the Philippines. This upward trend is expected to continue as PAGCOR and other operators in the country continue to innovate and adapt to new challenges.
Casino Filipino’s planned acquisition of 2,000 new slot machines represents a significant step forward in PAGCOR’s modernization strategy. With a total of 3,341 new machines ordered and the first batch set to arrive by mid-September, the agency is making a clear statement about its commitment to enhancing its gaming offerings and improving profitability ahead of the planned privatization.
The modernization program comes at a time when the Philippine gaming industry is experiencing robust growth, as evidenced by the Q2 revenue figures. As PAGCOR moves forward with its plans to upgrade its casinos and appeal to potential investors, the future looks bright for the country’s gaming sector.
The industry faces challenges, particularly with the recent nationwide POGO ban, which could impact revenue and jobs. PAGCOR’s appeal to spare outsourcing companies that serve international markets underscores the complexity of the situation.
PAGCOR’s modernization efforts, combined with the growth in gaming revenues and the upcoming privatization, are setting the stage for an exciting and potentially transformative period for the Philippine gaming industry.