The Philippine Amusement and Gaming Corporation (PAGCOR) has announced significant progress in the casino industry’s gross gaming revenue (GGR), indicating a remarkable recovery. Ajejandro Tengco, PAGCOR’s Chairman and CEO, shared that GGR is on the cusp of matching and potentially surpassing the all-time high achieved in 2019. This resurgence is attributed to relaxed travel restrictions and the evolving potential of the Clark Freeport Zone.
GGR Near 2019 Levels:
PAGCOR’s Chairman and CEO, Ajejandro Tengco, reported that the gross gaming revenue in Philippine casinos has almost returned to the levels of 2019, a year in which PAGCOR set a record for the highest GGR in the nation’s history. The gaming sector’s resurgence is a positive sign for the industry’s post-pandemic recovery.
Optimistic Projections:
Tengco expressed optimism regarding the 2023 GGR, stating that it is expected to at least match the 2019 record, if not exceed it. This projection is particularly noteworthy as it has been achieved despite the absence of some traditional high rollers and junkets, with domestic players and new tourists stepping in to fill the gap.
Impact of Relaxed Restrictions:
The revival in GGR has been facilitated by the recent relaxation of travel and movement restrictions, allowing more visitors to access casinos and boost the industry. The easing of these limitations has played a pivotal role in restoring the gaming sector’s vibrancy.
Clark Freeport Zone Development:
Tengco highlighted the ongoing transformation of the Clark Freeport Zone, which is poised to become a major gaming and tourism hub within the next decade. The development includes infrastructure improvements, expanded tourist attractions, and the creation of new commercial districts, all contributing to the area’s potential for growth.
MICE Tourism Zone:
The Clark Development Corporation (CDC) is actively supporting plans to turn the Clark Freeport Zone into a Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism zone. This strategic move aims to attract a diverse range of visitors and elevate the region’s appeal.
Investment in Slot Machines:
PAGCOR is set to receive 3,000 new slot machines by January of the coming year. The organization has established a revenue-sharing agreement with a supplier, with expectations of generating a minimum of ₱18 billion ($321 million) in revenues over the next five years. This investment demonstrates a commitment to modernizing and expanding the gaming offerings.
Table Games Modernization:
PAGCOR’s strategy also includes the modernization of table games by replacing old tables with more sophisticated options. This initiative aims to attract a broader player base and increase revenue further, reflecting a commitment to adapt to evolving industry dynamics.
Strong Q3 Results:
In PAGCOR’s recent third-quarter results, the corporation reported a total income just below $1 billion. This income comprises revenue from gaming operations, gains, other service and business income, as well as other non-operating income. The results underline the organization’s resilience and success in navigating the post-pandemic landscape.
PAGCOR’s remarkable progress in reviving the Philippines’ casino industry, as demonstrated by its nearing of 2019 GGR levels, showcases the resilience and adaptability of the sector. With a backdrop of relaxed restrictions, ambitious development plans, and strategic investments in gaming offerings, PAGCOR is paving the way for a prosperous future in the gaming and tourism industry of the Philippines.