The Philippines’ Record-Breaking Gambling Revenue in 2024
In 2024, the Philippines achieved a remarkable milestone in its gambling industry, with gross gambling revenue (GGR) soaring to an unprecedented PHP410 billion (approximately $7.16 billion). This impressive figure represents a 24.6% increase compared to the previous year, as reported by Alejandro Tengco, the Chairman and CEO of the Philippine Amusement and Gaming Corporation (Pagcor). This surge in revenue highlights the dynamic nature of the gaming sector in the Philippines, driven by a combination of factors that reflect changing consumer preferences and strategic regulatory adjustments.
The Rise of iGaming
A significant contributor to this record-breaking revenue is the burgeoning iGaming sector, which encompasses online casino games and internet-based bingo, commonly referred to as ‘E-Games’ by Pagcor. In 2024, the iGaming industry experienced a staggering 165% increase in revenue, reaching a historic PHP154.51 billion (around $2.7 billion). This growth underscores a major shift in consumer behavior, with more players gravitating towards digital gaming platforms. The rapid expansion of the iGaming sector not only exceeded its full-year revenue target of PHP100 billion ($1.75 billion) by September but also showcased the increasing acceptance and popularity of online gambling in the Philippines.
Land-Based Casinos Remain Dominant
Despite the impressive growth of the online gaming sector, land-based casinos continue to play a crucial role in the overall gambling landscape. In 2024, these establishments generated PHP201 billion (approximately $3.5 billion) in GGR, reaffirming their status as the primary revenue drivers in the industry. The coexistence of both online and land-based gaming platforms illustrates a diverse market that caters to various consumer preferences, ensuring that the gambling sector remains robust and multifaceted.
Strategic Policy Adjustments
Tengco attributes the strong performance of the iGaming sector to strategic policy adjustments made by Pagcor. One of the most impactful changes was the reduction of licensing fees for operators, which made the market more appealing to local businesses. In January 2024, Pagcor implemented another fee reduction, lowering operator fees from 35% to 30% of GGR, following a significant cut from 55% in 2023. These adjustments not only incentivized registered operators but also encouraged unregistered entities to enter the regulated market, thereby preventing business closures and sustaining profitability within the industry.
Regulatory Changes and the Closure of POGOs
The gaming sector’s remarkable growth comes amidst significant regulatory changes, particularly the closure of Philippine Offshore Gaming Operators (POGOs). This decision, announced by President Ferdinand Marcos Jr. in July 2024 and enforced in November, was prompted by serious allegations against these offshore operators, including financial scams, money laundering, and connections to organized crime, such as kidnapping and human trafficking. The government’s decisive action reflects a commitment to maintaining the integrity of the gaming industry while addressing serious concerns related to illegal activities.
A Robust and Technology-Driven Future
Despite the exit of offshore operators, Tengco remains optimistic about the future of the Philippines’ gaming market, describing it as “robust” and increasingly technology-driven. He emphasized that Pagcor will continue to exercise strict oversight of electronic gaming while intensifying efforts to crack down on illegal operators. This commitment to regulation and oversight is crucial in ensuring that the gaming environment remains safe and fair for all participants.
Commitment to Responsible Gaming
As the landscape of Philippine gaming evolves, Tengco reassured industry stakeholders that responsible gaming and market integrity will remain central to Pagcor’s mission. He expressed confidence that the best days of Philippine gaming are still ahead, highlighting the organization’s dedication to fostering a sustainable and responsible gaming environment. As the industry adapts to new challenges and opportunities, the focus on technology and regulatory compliance will be vital in shaping the future of gambling in the Philippines.