The gaming industry in the Philippines has demonstrated remarkable growth in the first half of 2024, driven primarily by the expansion of online gaming sectors such as E-Games and E-Bingo. According to the latest report from the Philippine Amusement and Gaming Corporation (PAGCOR), the industry’s gross gaming revenue (GGR) surged by 19.2% year-on-year to reach Php194.7 billion (US$3.34 billion) during this period. This growth underscores the sector’s increasing importance in the Philippine economy, with significant contributions to national revenue and economic development.
Online Gaming Sector
One of the most notable aspects of this growth is the phenomenal performance of the E-Games sector, which saw its GGR more than triple to Php63.01 billion (US$1.08 billion). This surge highlights a strong domestic demand and consumer interest in online gaming offerings, marking a substantial shift in the industry landscape.
Licensed Casinos
Licensed casinos, including prominent locations like Entertainment City, Clark, and Cebu, continued to be pivotal in the industry, contributing Php99.2 billion (US$1.70 billion) to the overall GGR. Despite challenges and varying market dynamics, these establishments remain fundamental to the Philippine gaming ecosystem.
PAGCOR-operated Casinos
Conversely, PAGCOR-operated casinos under the Casino Filipino brand experienced a decline in GGR by 11.6% year-on-year, amounting to Php8.9 billion (US$152 million). This decline reflects ongoing competitive pressures and operational adjustments within the state-operated segment of the market.
Financial Performance and Contributions
The strong performance of the gaming industry translated into significant financial gains for PAGCOR itself. The corporation reported a substantial increase in net income, growing by 121.5% to Php6.56 billion (US$112 million) compared to Php2.96 billion (US$50.7 million) in the first half of the previous year. This financial success enabled PAGCOR to contribute Php31.8 billion (US$545 million) to the nation’s treasury in the first six months of 2024, a notable increase from Php22.6 billion (US$387 million) during the same period in 2023.
Revenue Breakdown of PAGCOR
PAGCOR’s total gross revenues amounted to Php51.8 billion (US$887 million) for the first half of 2024, reflecting a robust 42.9% increase year-on-year. The bulk of these revenues, Php45.4 billion (US$778 million), came from gaming operations, underscoring the central role of gaming activities in PAGCOR’s revenue streams.
Online Gaming Contribution
A significant portion of PAGCOR’s gaming revenues, approximately Php20.7 billion (US$355 million), was attributed to the online gaming sector. This sector not only represents a substantial revenue stream but also indicates a growing market segment that continues to attract both players and investors.
Integrated Resorts and Licensed Casinos
Integrated resorts and licensed casinos contributed Php16.2 billion (US$277 million) to PAGCOR’s gaming revenues, highlighting their enduring significance despite the rapid growth of online gaming alternatives.
PAGCOR-operated Casinos
The Casino Filipino brand, operated directly by PAGCOR, generated Php6.93 billion (US$119 million) in gaming revenues, reflecting a niche segment within the broader gaming landscape.
Future Prospects and Projections
With the robust revenue growth observed in the E-Games sector and increasing interest from stakeholders, PAGCOR remains optimistic about achieving its annual gross revenue target of Php100 billion (US$1.71 billion) for the year 2024. This optimism is bolstered by favorable market conditions and ongoing strategic initiatives aimed at sustaining growth and expanding market reach.
Chairman’s Perspective
Alejandro H. Tengco, Chairman and CEO of PAGCOR, emphasized the pivotal role of the gaming industry in driving economic outcomes, citing the substantial increase in net income and contributions to nation-building. He expressed confidence in the industry’s trajectory, highlighting the potential for 2024 to be a landmark year for PAGCOR and its stakeholders.
The Philippines gaming industry has demonstrated robust growth in the first half of 2024, propelled by significant expansions in the online gaming sector and consistent performance from licensed casinos and integrated resorts. This growth not only enhances the industry’s economic footprint but also reinforces its role in contributing to national revenue and development. As the year progresses, stakeholders anticipate further advancements and contributions from this dynamic sector, underscoring its critical importance within the broader Philippine economy.