The Philippines gaming industry has reported a significant revenue increase of 19.2% year-on-year for the first half of 2024, reaching Php194.7 billion (US$3.34 billion). This impressive growth has been largely driven by the rapid expansion of the online gaming sector, including E-Games, E-Bingo, and other bingo grantees. According to the Philippine Amusement and Gaming Corporation (PAGCOR), the E-Games sector achieved remarkable performance, with its gross gaming revenue (GGR) more than tripling to Php63.01 billion (US$1.08 billion) in the first half of the year.
Online Gaming’s Phenomenal Growth
The online gaming sector in the Philippines has seen unprecedented growth in the first half of 2024. E-Games, E-Bingo, and other bingo grantees have significantly contributed to this surge, with the sector’s gross gaming revenue more than tripling compared to the same period last year. This growth highlights the sector’s domestic-driven success and its increasing popularity among Filipino players.
PAGCOR’s total gross revenues for the first half of 2024 amounted to Php51.8 billion (US$887 million), a 42.9% year-on-year increase. Gaming operations contributed Php45.4 billion (US$778 million) of this total, with nearly half coming from the online gaming sector. This phenomenal growth in online gaming has positioned it as a major contributor to the overall revenue of the gaming industry in the Philippines.
The rapid expansion of the online gaming sector has also attracted more players and investors to the Philippine market. PAGCOR Chairman and CEO Alejandro H. Tengco expressed optimism about the future, stating that the year 2024 will be a banner year for PAGCOR, given the significant revenue increase in the E-Games sector.
Land-Based Casinos and PAGCOR’s Performance
While online gaming has been a standout performer, land-based casinos remain the largest contributors to the gross gaming revenue in the Philippines. Licensed casinos, including those in Entertainment City and regional locations such as Clark and Cebu, generated Php99.2 billion (US$1.70 billion) in the first half of 2024. These casinos continue to attract a large number of visitors, contributing significantly to the overall revenue of the gaming industry.
However, PAGCOR-operated casinos experienced an 11.6% decline in gross gaming revenue, amounting to Php8.9 billion (US$152 million). Despite this decline, PAGCOR’s overall net income saw a significant increase of 121.5%, reaching Php6.56 billion (US$112 million), up from Php2.96 billion (US$50.7 million) in the same period last year. This robust income growth allowed PAGCOR to remit Php31.8 billion (US$545 million) to the national treasury in the first six months of 2024.
The mixed performance across different segments of the gaming industry highlights the dynamic nature of the market. While some areas have seen declines, others have experienced substantial growth, contributing to the overall positive outlook for the industry.
Reforms and Future Outlook
The impressive growth in the Philippines gaming revenue can be attributed partly to reforms and strengthened regulations under the new administration. PAGCOR has been actively working to channel illegal activity into the regulated market by reducing fees for operators and encouraging more businesses to apply for licenses. These efforts have helped create a more favorable environment for the gaming industry to thrive.
Looking ahead, PAGCOR is on track to achieve or exceed Php100 billion (US$1.71 billion) in annual gross revenue for 2024. The regulator’s strategic moves, such as the planned privatization of its operations by 2025 to focus solely on regulatory roles, aim to level the playing field for licensees and attract new investment. This shift is expected to further boost the growth of the gaming industry in the Philippines.
PAGCOR’s efforts to strengthen regulations and promote a fair gaming environment have been well-received by industry stakeholders. The continued growth of the online gaming sector, coupled with the resilience of land-based casinos, positions the Philippines gaming industry for a prosperous future. With more players and investors showing interest in the market, the outlook for the remainder of 2024 and beyond remains positive.
