Alejandro Tengco, the Chairman and CEO of the Philippine Amusement and Gaming Corporation (Pagcor), is determined to increase revenue beyond pre-pandemic levels and contribute to the nation’s development. With the goal of expanding gaming operations, Tengco seeks partnerships with the gaming industry and plans to enhance the activities and scope of Philippine offshore gaming operators (POGOs). Despite concerns about China’s tourism blacklist threats, Tengco remains confident and aims to capitalize on the resurgent growth of the Philippine gaming industry.
Driving Revenue and Nation Building:
Tengco’s vision is to position Pagcor as a partner to address the needs of operators and propel the Philippine gaming industry to new heights. By fostering cooperation and better regulation, Pagcor aims to contribute significantly to nation-building efforts through increased revenue generation. Tengco emphasizes the importance of creating a robust Philippine gaming industry and invites stakeholders to join this endeavor.
Expanding Partnerships and Regulation:
Pagcor’s long-term plan includes exploring partnerships with the private sector and divesting its Casino Filipino operations to focus solely on regulatory functions. Tengco aims to improve the regulatory framework and enhance business operations to achieve sustainable growth. While previous attempts to privatize Pagcor’s casinos were unsuccessful, Tengco’s leadership brings renewed hope for success.
Resilient Growth and Revenue Potential:
Despite challenges, the Philippine gaming industry has demonstrated resilience and significant growth potential. Pagcor’s gross gaming revenue reached PHP214.3 billion ($3.95 billion) in 2022, 84% of the record set in 2019. Projections for 2023 indicate a target of PHP244.8 billion, which, if achieved, could establish a new revenue record for the industry. Entertainment City, a prominent gaming hub in Manila, showcases world-class casino resorts that attract crowds and contribute to revenue growth.
Development Opportunities and Overbuilding Concerns:
While development within Entertainment City has been slower than anticipated, with some licensees yet to fully build out their properties, the overall market remains promising. Potential growth lies in domestic and international players, with the Philippines positioned to attract more tourists and improve local discretionary spending. Concerns about overbuilding in the gaming sector are dismissed by Tengco, who highlights the positive indicators and opportunities for sustained growth.
POGO Expansion and China’s Influence:
Tengco intends to expand the activities of Philippine offshore gaming operators (POGOs) and domestic online gaming enterprises (PIGOs) to increase Pagcor’s revenue. Despite concerns about China’s supposed tourism blacklist, Tengco asserts that there is no evidence supporting such claims. He plans to explore licensing options for business processing outsourcing to serve offshore gaming companies licensed in other jurisdictions. While mainland Chinese visitors to the Philippines have been limited due to the pandemic, the potential for growth remains significant.
Junket Regulation and AML/CTF Compliance:
Pagcor, under Tengco’s leadership, is revising junket regulations as part of a broader national effort to improve compliance with anti-money laundering and counter-terrorism financing standards. By addressing the concerns raised by the Financial Action Task Force, the Philippines aims to be removed from the global grey list. Tengco highlights the opportunity to attract Korean junket operators who may be seeking alternatives to Macau’s depleted sector, which could increase VIP player numbers and benefit the industry.
Alejandro Tengco’s tenure as Chairman and CEO of Pagcor ushers in a new era of growth and development for the Philippine gaming industry. By fostering partnerships, expanding gaming operations, and improving regulatory functions, Tengco aims to increase revenue and contribute to the nation’s progress. Despite challenges and external factors, the industry’s resilience and potential remain.