Philippine Gambling Industry Set to Break Records with $6.03 Billion Revenue in 2024 Amid Regulatory Changes
The Philippine gambling industry is on track to achieve a remarkable milestone in 2023, with revenues projected to reach $6.03 billion, surpassing the previous record set in past years. This substantial uptick, equivalent to over 350 billion pesos, is driven by the vibrant gaming landscape in Manila that continues to draw high-rollers from China, Japan, South Korea, and other countries. Alejandro Tengco, the Chairman of the Philippine Amusement and Gaming Corporation (Pagcor), the country’s regulatory body for gaming, made these projections during a recent announcement.
Growth Driven by Electronic Gaming
Tengco highlighted that the growth of this sector is significantly influenced by the electronic gaming segment. The forecasted revenue not only breaks the previously set target of 334 billion pesos for 2024 but also marks a 23% increase from 2023’s gross gaming revenue (GGR) of 285 billion pesos. “Our GGR for the year, I think it’s over 350 billion pesos,” Tengco emphasized, as reported by Reuters. GGR represents the total amount wagered by players minus their winnings, a key metric that reflects the overall performance of the gambling sector.
Manila’s gaming scene, characterized by its resemblance to the Las Vegas Strip, boasts integrated casino resorts owned by major players in the industry, including Japan’s Universal Entertainment Corp and Melco Resorts & Entertainment. This allure continues to captivate tourists and gamblers from across Asia, further bolstering the industry’s growth.
Regulatory Changes on Offshore Gambling
In addition to the revenue projections, Tengco addressed significant regulatory changes impacting the gambling landscape in the Philippines. He announced that Pagcor is set to revoke all licenses of offshore gambling operators by the end of the year, a move aligned with President Ferdinand Marcos Jr.’s directive issued in July to ban Philippine Offshore Gaming Operators (POGOs). According to Tengco, the number of POGOs has sharply declined from 48 to just 13 by November 30, and he anticipates that by December 15, this number will drop to zero.
Tengco noted that any POGOs operating after January 1 will be classified as illegal, reinforcing the government’s commitment to regulating the industry more strictly. This ban stems from growing concerns related to POGO-operated crimes, including reports of human trafficking, torture, kidnapping, and fraudulent activities like credit card scams and cryptocurrency investment fraud.
The Rise of Online Gambling
The online gambling market in the Philippines has rapidly evolved since its inception in 2016. Operators have capitalized on the country’s liberal gambling laws to draw in clients from China, where gambling is prohibited. This strategic positioning has allowed the Philippines to not only establish a booming gambling industry but also to face scrutiny regarding the social implications of such growth, particularly surrounding the activities associated with POGOs.
As the Philippine gambling industry embraces this wave of expansion, the focus remains on balancing economic growth with regulatory oversight to ensure a safe and responsible gaming environment. The projected revenue reaffirmations and impending regulatory changes indicate a transformative period within the sector, with stakeholders closely monitoring how these developments will shape the future of gambling in the Philippines.