PAGCOR: Pioneering the Philippines as a Gaming Powerhouse
The Philippine Amusement and Gaming Corporation (PAGCOR) has dedicated years to establishing the Philippines as a premier gaming destination, and the fruits of their labor are becoming increasingly evident. Under the leadership of Chairman and CEO Alejandro H. Tengco, the country is now recognized as one of the most attractive gaming markets in the Asia-Pacific region, second only to Macau.
The Surge in Popularity of the Philippine Gaming Market
Recent regulatory reforms and privatization efforts have significantly enhanced the appeal of the Philippine gaming market. During the 6th ASEAN Gaming Summit, Tengco highlighted the positive impact of these reforms on the industry. According to reports from Asia Gaming Brief, the Philippines is on track to become the second-largest gaming market in the ASEAN region, a testament to the effectiveness of PAGCOR’s initiatives.
PAGCOR’s primary responsibility is to oversee and regulate commercial casinos across the Philippines, including special economic zones like the Clark Freeport Zone in Central Luzon. Additionally, the corporation operates under the Casino Filipino brand, allowing it to manage state-run casinos effectively.
Record-Breaking Revenue Projections
The recent period has been particularly fruitful for PAGCOR. In 2024, the corporation anticipates an 11% revenue increase, projecting earnings of approximately $5.1 billion. This would bring total revenue to PHP336 billion (around $6.1 billion), surpassing pre-pandemic levels and indicating a full recovery from the disruptions caused by COVID-19.
Tengco expressed optimism about sustained growth in gaming revenue, driven by increased entertainment options for both local and foreign tourists. The licensed casinos in Entertainment City, Clark, Metro Manila, Cebu, and Fiesta casinos in Rizal are expected to contribute PHP257 billion ($4.6 billion) to the gross gaming revenue (GGR) in 2024. Meanwhile, the burgeoning sectors of e-casinos, e-bingo, and sports betting are projected to add PHP61.7 billion ($1.1 billion) to the GGR, marking them as the fastest-growing segments in recent years.
Key Drivers of PAGCOR’s Success
Several factors have contributed to PAGCOR’s remarkable success. The opening of new integrated resorts has attracted a diverse clientele, while a growing interest in electronic gaming has further fueled revenue growth. Additionally, the ongoing privatization of state-owned casinos is expected to enhance operational efficiency and profitability.
Despite these advancements, challenges remain, particularly concerning illegal operators. Tengco has urged unlicensed operators to secure the necessary permits, which would not only legitimize their operations but also bolster the country’s revenue stream.
Future Plans and Developments
Looking ahead, PAGCOR has ambitious plans to expand its footprint in the gaming industry. Casino Filipino is set to launch new gambling sites by late 2025 or early 2026, which will provide an additional boost to the Philippine economy. Tengco noted that once fully privatized, PAGCOR will primarily generate revenue from regulatory fees and licenses, as well as from revenue shares sold.
Currently, license fees for operators stand at 40% of total revenue. However, starting April 1, these fees will decrease to 35% for both online and land-based casinos, a strategic move aimed at enhancing the market’s attractiveness to operators. Tengco remarked on the significance of this reduction, noting that when he took office in late 2022, license fees were over 50%. The gradual decrease aligns the Philippines with global industry standards, making it a more competitive market.
Exciting New Developments
In addition to regulatory changes, new projects are on the horizon. Bloomberry has announced plans for the Solaire Resort North in Quezon City, a new integrated resort valued at approximately $1 billion, set to open in May. This development is expected to further solidify the Philippines’ status as a leading gaming destination in the region.
As PAGCOR continues to navigate the evolving landscape of the gaming industry, its commitment to regulatory excellence and market growth positions the Philippines as a formidable player in the global gaming arena. The future looks bright, with ongoing reforms and new ventures promising to elevate the country’s gaming market to new heights.