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In 2024, the gross gambling revenue (GGR) of the Philippine gaming sector surged by 24.6%, bringing it to a historic height of PHP410 billion ($7.16 billion) for the year. This is the most significant annual record for the country, and it is largely propelled by explosive growth in the iGaming sector, according to Alejandro Tengco, Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR).
During his speech at the ASEAN Gaming Summit last March 18, Tengco specified that strategic policy adjustments and the closure of offshore gaming operators without permits served to bring about this defining performance.
iGaming Spearheads the Movement
Dominating the year 2024 was the iGaming industry, popularly known as “E-Games” by PAGCOR, which comprises online casino games as well as bingo over the internet. Gross gaming revenue (GGR) from iGaming increased by 165 percent year-on-year to reach PHP154.51 billion ($2.7 billion), setting a new industry standard.
Such was the pace of growth that the sector surpassed its full-year target of PHP100 billion by September. Tengco attributed this success to policy reforms, including a gradual reduction in fees for licensed operators. “Strategic adjustments have created a more favorable environment for local operators while encouraging unregistered entities to join the regulated market,” he said.
Land-Based Casinos Still Dominate
Amid the rapidly growing iGaming segment revenue, land-based casinos still remained the franchise arms of the Philippine gaming industry. Licensed casinos posted a gross gambling revenue of PHP201 billion ($3.5 billion) in 2024, which exhibits the relevance of land-based casinos in the overall performance of the sector.
However, according to Tengco, it will still pursue the application of technology-driven management solutions, particularly to ensure that regulated electronic gaming continues to be a pillar for development moving forward.
Impacts of Lower iGaming Fees
One of the key drivers behind iGaming’s success was PAGCOR’s decision to lower fees for online operators. A continued decreasing fee from 55% of GGR to 35% started in 2023, and then, another 30% was imposed as of January 2024. This legislation enabled not just better profitability on the side of licensees, but also encouraged those who had not previously registered with the authority to use the regulated market.
Further promoting this shift was the closing of Philippine Offshore Gaming Operators (POGOs). This policy was announced by President Ferdinand Marcos Jr.’s administration in July 2024 with the reason that POGO has been tied to many illegal operations, such as financial scams and human trafficking. It affected the whole industry when it took effect in November.
These changes were also welcomed by Tengco who said PAGCOR remains relentless in fighting illegal operators while responsible gaming controls and market integrity remain at the forefront of its efforts.
A “Robust” Market Despite Challenges
Despite all concern over the exit of POGOs, Tengco assures stakeholders, that the Philippine gaming market is still “robust.” He adds that through proactive regulation by PAGCOR, the industry faces sustainable growth into the post-POGO era.
“As offshore gaming exits, PAGCOR recognizes that the future of Philippine gaming will continue to become more technology-driven,” Tengco said during his keynote address. “We wish to assure our industry stakeholders that even as we strive for greater success, responsible gaming, and market integrity will continue to be at the heart of our efforts.”
The Best Days Are Yet to Come
With record-breaking revenues and a thriving iGaming sector, PAGCOR is optimistic about what lies ahead for Philippine gaming. Tengco expressed to the public a clear message of conviction that reforms and technology will lead to greater achievements in the industry in future years.
“The best days of Philippine gaming are still ahead of us,” he said, “and we cannot wait to see what comes next and work with all stakeholders in shaping what comes next.”
As PAGCOR continues its endeavors to modernize and regulate the industry, the focus will be on the future direction of one of the most dynamic gaming markets in Asia.
Source: iGaming Business (iGB)
