PAGCOR Reports Stellar Growth in Philippine Gambling Sector for Q3 2023

The Philippine Amusement and Gaming Corporation (PAGCOR) has recently unveiled its official report detailing the performance of the local gambling sector for the third quarter of 2023. The findings reveal a remarkable surge in gross gaming revenue (GGR), a trend that PAGCOR officials attribute to ongoing modernization efforts within the industry.

E-Gaming Growth Offset a Decline in Casino & Bingo

According to PAGCOR’s report, the Philippines’ gross gaming revenue reached an impressive PHP 94.61 billion (approximately $1.61 billion), reflecting a substantial 37.5% increase compared to the same period last year, which recorded a GGR of PHP 68.79 billion. This growth is particularly noteworthy given the challenges faced by traditional gaming sectors.

The standout performer in this quarter was the electronic gaming segment, which saw an astonishing year-on-year increase of 464.4%. The electronic gaming sector reported revenues of PHP 35.71 billion ($610 million) in Q3 2023, a significant leap from the PHP 6.32 billion generated in the same quarter last year. This explosive growth underscores the shifting landscape of the gaming industry, where technology and digital platforms are becoming increasingly dominant.

Despite the impressive gains in electronic gaming, licensed casinos still emerged as the largest revenue contributors, generating PHP 50.72 billion ($860 million) in GGR. However, this figure represents a slight decline of 2.3% from the PHP 51.9 billion reported in the previous year.

PAGCOR’s Casino Filipino properties also faced challenges, bringing in PHP 3.64 billion in GGR ($62 million), which marks a 26.3% decrease from the record PHP 4.94 billion reported in Q3 2022. Additionally, the bingo sector contributed PHP 4.52 billion ($77 million) to the total GGR, reflecting a 19.4% decline from the PHP 5.61 billion generated in the same quarter last year.

Overall, while traditional gaming sectors like casinos and bingo experienced downturns, the robust growth of the electronic gaming sector effectively offset these declines, showcasing a dynamic shift in consumer preferences.

Tengco Is Optimistic about the Results

Alejandro H. Tengco, PAGCOR’s chairman and chief executive officer, expressed his enthusiasm regarding the results, particularly highlighting the “phenomenal increase” in GGR within the electronic gaming sector. He emphasized that this remarkable performance is a testament to the local sector’s adoption of cutting-edge technology and the integration of mobile gadgets into gaming experiences.

Tengco is confident that technology will continue to play a crucial role in shaping the future of gaming in the Philippines and beyond. He believes that the electronic gaming sector is poised for further growth, driven by the increasing importance of technology in people’s daily lives.

In his remarks, Tengco stated, “In fact, by year-end, we expect this sector to generate as much as PHP 78 billion in license fees alone, substantially contributing to the realization of our PHP 100 billion revenue target for 2024.” This ambitious target reflects PAGCOR’s commitment to harnessing the potential of the electronic gaming sector while navigating the evolving landscape of the gambling industry.

Regulatory Changes and Industry Challenges

In a related development, the Philippine government has taken significant steps to regulate the gambling industry more stringently. Recently, President Ferdinand Marcos Jr. signed Executive Order 74, which effectively bans all offshore gaming operators from operating within the country. This decision was prompted by rising public concerns regarding crime and social issues associated with gambling activities.

The ban on offshore operators is part of a broader effort to ensure that the gaming sector operates within a framework that prioritizes public safety and welfare. As the industry continues to evolve, PAGCOR’s focus on modernization and technological integration will be essential in navigating these regulatory changes while fostering a sustainable gaming environment.

As the Philippine gambling sector adapts to these challenges and opportunities, the latest PAGCOR report serves as a reminder of the industry’s resilience and potential for growth, particularly in the electronic gaming segment. The future of gaming in the Philippines appears bright, driven by innovation and a commitment to responsible gaming practices.