Philippines sees 19.2% surge in gaming revenue for H1 2024, fueled by online growth and reforms

The Philippines experienced a rise in gross gaming revenue (GGR) during the first half of 2024, reaching PHP194.74 billion ($3.33 billion), a 19.2% increase compared to the same period last year.

The figures were reported by the Philippine Amusement and Gaming Corporation (Pagcor), which attributed the surge partly to recent reforms and stronger regulations under the new administration.

Land-based casinos were the primary contributors, generating PHP99.16 billion ($1.7 billion) in revenue. However, Casino Filipino properties, which are managed by Pagcor, saw an 11.6% decline, earning PHP8.89 billion ($150 million).

Pagcor has plans to privatize these operations by 2025, aiming to transition to a regulatory-only role to create a more competitive environment for licensees and attract new investments.

The online gaming sector, run by Philippine Offshore Gaming Operators (POGOs), showed a notable performance, as online GGR skyrocketed to PHP63.01 billion ($1.08 billion), more than tripling the PHP20.43 billion ($350 million) recorded in the first half of 2023.

Despite the growth, the sector remains controversial, with ongoing legislative efforts led by Senator Joel Villanueva to ban POGOs.

In an effort to curb illegal gaming activities, Pagcor has implemented measures to lower fees for operators by an average of 5%, encouraging more businesses to seek licenses. This initiative was announced by Pagcor chairman and CEO Alejandro Tengco in March.

Revenue from Pagcor's operations, which include income from gaming activities and business services such as licensing fees, totaled PHP51.76 billion ($890 million), a 42.9% increase from the previous year. Of this, PHP45.39 billion ($780 million) came from gaming operations, with online gaming contributing almost half at PHP20.66 billion ($350 million).

Integrated resorts and licensed casinos contributed PHP16.06 billion ($270 million) to Pagcor's revenue, accounting for 35.4% of the total. Meanwhile, casinos operated by Pagcor generated PHP6.93 billion ($120 million), making up 15.3% of the total revenue.

Tengco expressed confidence in achieving or exceeding PHP100 billion in annual gross revenue for 2024. "Given the phenomenal revenue increase in the iGaming sector, and with more players and investors signifying their intent to enter the Philippines market, we are confident that the year 2024 will be truly a banner year for Pagcor," he said.

Tengco highlighted: "Pagcor’s robust net income growth translates of course to a larger contribution to nation-building. We were able to remit PHP31.8 billion to the treasury in the first six months, compared to PHP22.6 billion in the same period last year."