Philippines: PAGCOR expects revenue from gambling to match, if not surpass, pre-Covid levels in 2023

Alejandro Tengco, Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR), said the country's gambling industry has almost returned to pre-pandemic levels, and that the increased demand for leisure, travel, and entertainment will sustain the growth trajectory of the Philippine gaming industry in the coming years.

Speaking at the RGB Connect Gala Night at Hilton Clark Sun Valley Resort in Pampanga over the weekend, Tengco said the lifting of travel and movement restrictions has fueled demand for dining, shopping, and other outdoor activities that were not possible during the pandemic. 

“And so, one year into the term of President Ferdinand Marcos Jr., our gross gaming revenues have returned to near the levels of 2019, which was the year PAGCOR achieved its all-time high for Philippine GGR levels," he said.

Like many other regions, the Philippines had to endure strict measures during the Covid-19 pandemic. These included restrictions on travel to and from the country and the temporary closure of land-based facilities. However, with all measures having now been lifted, this has allowed the country’s gambling industry to bounce back. 

"Today, we expect the 2023 GGR to match, if not surpass, our 2019 record. Not bad considering that many of our traditional high rollers and junkets have not fully returned, but our domestic players and the influx of new tourists have filled the void," he stated.

Looking to the future and further potential for the local market, Tengco said several factors will support growth. These include the opening of more integrated resorts, such as those in the Clark Freeport Zone and Special Economic Zone. Clark is a former US airbase in Pampanga that has been developed into a popular tourist destination. It also boasts a range of other entertainment facilities.

"Clark is projected to become a major gaming and tourism hub before the end of this decade. If you go around Clark, you can see its immense potential. You can see the infrastructure in place, you can see the surrounding tourist destinations, and you can see the new buildings and new commercial districts being developed in all directions," Tengo noted.

The executive further shared that the state gaming agency is also embarking on a modernization program to increase revenues. This includes plans to roll out 3,000 new slot machines by January 2024. Tengco explained that PAGCOR has an agreement in place with a supplier for a revenue-sharing scheme for these machines. Through this, PAGCOR expects to generate at least PHP18 billion ($321.5 million) in revenue over the next five years. PAGCOR is also modernizing its table games with new games to help "attract more players and further increase revenues."

On top of this, Tengco says plans are progressing with the launch of a new online platform. The agency in July said it would enter the online gambling market by launching Casinofilipino.com, which this due to go live in the first quarter of 2024.

PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said increased demand for leisure, travel and entertainment will sustain the growth trajectory of the Philippine gaming industry in the coming years.

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— Philippine Amusement and Gaming Corporation (@pagcorph) November 8, 2023

Tengco shared that PAGCOR is now in the process of procuring a system for the platform, adding that this will give the agency a "significant share of the very lucrative and very profitable online market."

Last week, PAGCOR reported its results for the first nine months of 2023. Revenue during the period reached PHP55.95 billion ($1 billion). Most of this was classed as gaming and operations, with this amounting to PHP51.66 billion ($922.7 billion).

The declaration of growth intent comes after PAGCOR last month announced its plans for the privatization of state-run casinos, with a target completion date within the next two years.