Philippine Gambling Sector on Track for $6B Revenue in 2024

The gambling sector in the Philippines is expected to continue growing, surpassing the reported gross gaming revenue (GGR) in 2023. That’s the opinion of the chairman of the Philippine Amusement and Gaming Corporation (PAGCOR), Alejandro Tengco, who recently spoke to reporters.

GGR to Continue Growing, Plan to Ban POGOs Underway

The target set by PAGCOR for this year’s GGR was approximately P334 billion ($5.76 billion). While that marked an increase when compared to the P285 billion ($4.91 billion) in GGR reported for 2023, it seems that this year’s figures may even surpass the initial expectations. Quoted by Reuters, Tengco said on Tuesday that this year’s GGR is expected to surpass P350 billion ($6.03 billion).

Besides confirming that the Philippine gambling industry is expected to have another strong year, the executive also spoke about other important issues. Tengco reiterated PAGCOR’s readiness to comply with an order issued by President Ferdinand Marcos which called for the ban of POGOs, or Philippine offshore gambling operators. According to PAGCOR’s chairman, the process of eliminating all POGO licenses has already started, and it is expected to be completed by the end of this year.

“Our GGR for the year, I think it’s over P350 billion.“

Alejandro Tengco, chairman at PAGCOR

E-Gaming Positively Impacts GGR

The fight against POGO operators follows growing concerns about links to a range of criminal activities. In addition to financial crimes such as money laundering, identity fraud and different scams related to investments and credit cards, POGOs have been tied to even more serious offenses such as kidnappings, murders and human trafficking.

The concerns and ties to unlawful activities over the last few years ultimately led to the downfall of POGOs. In contrast, a decade ago, the services of offshore gambling operators were flourishing, helping attract wealthy gamblers from countries across Asia to the Philippines. While valued at billions once, year after year, POGOs continue to shrink, amid regulatory scrutiny and investigation into criminal activities.

The forecasted growth of the gambling industry in the Philippines doesn’t come as a surprise. Although the sector has been through rough times during the pandemic, it is certainly recovering and that’s happening faster than initial predictions.

A key role in the growth of GGR played e-gaming. Last month, PAGCOR confirmed strong GGR growth for Q3 this year, with revenue climbing 37.5% year-over-year to PHP 94.61 billion ($1.61 billion). The electronic gaming segment played a key role in that growth, considering it recorded a staggering 464.4% increase year-over-year. It is likely that e-gaming will continue to positively impact the sector’s results, throughout the next quarter and beyond.