The Philippine gaming industry, inclusive of its diverse non-casino operations, has reached unprecedented heights with gross gaming revenue (GGR) soaring to PHP94.61 billion (US$1.61 billion) in the third quarter of 2024. This remarkable increase of 37.5 percent compared to the same period last year, coupled with a 6.0 percent rise from the PHP89.23 billion recorded in the second quarter, sets a new quarterly record. The data, released by the Philippine Amusement and Gaming Corp (Pagcor), highlights a robust growth trajectory that underscores the sector’s dynamic expansion.
The surge of electronic gaming:
Leading the charge in this quarter’s growth, the electronic gaming segment demonstrated stellar performance, amassing a GGR of PHP35.71 billion. According to Pagcor’s announcement, this segment notched an extraordinary year-on-year growth of 464.38 percent. Alejandro Tengco, chairman and chief executive of Pagcor, emphasized the transformative impact of modern technology on the gaming landscape. “The electronic gaming sector recorded a phenomenal increase from last year,” Tengco stated, as reported by GGRAsia, adding, “This impressive performance is a strong indication that the use of modern technology and mobile gadgets in gaming and amusement will continue to play a pivotal role in shaping the future of gaming.” Tengco further projected that the electronic gaming sector could generate as much as PHP78 billion in license fees alone by the end of 2024, significantly contributing to the agency’s revenue target of PHP100 billion.
While electronic gaming soared, the country’s licensed commercial-sector casinos remained significant contributors to the third-quarter GGR in the Philippines, contributing the lion’s share of PHP50.72 billion. Although this figure represents a slight decline of 2.3 percent year-on-year, it marks a sequential growth of 2.0 percent from the preceding quarter. In contrast, Pagcor-operated casinos, which are part of the Casino Filipino network, experienced a downturn, bringing in PHP3.64 billion in GGR, which is a 26.3-percent decline from the previous year and a 22.4 percent drop quarter-on-quarter.
Challenges and prospects in casino operations:
These casinos, many of which are currently undergoing significant upgrades and modernization efforts in preparation for privatization, reflect a strategic shift towards enhancing operational efficiency and customer experience. This transition phase is expected to fortify the foundation for future revenue growth and operational excellence.
Looking ahead, Pagcor has set an ambitious target for the gaming industry to generate PHP336.38 billion in GGR for the entire year of 2024, representing a 17.9-percent increase compared to 2023. By the end of September, the industry had already achieved 78.9 percent of this ambitious target. Additionally, in a late October report, Pagcor disclosed a total income of PHP79.43 billion for the first nine months of the year, marking a 42.0 percent increase from the prior-year period. These figures not only reflect the gaming sector’s substantial contribution to the national economy but also underscore Pagcor’s effective regulatory and developmental role.
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Vanja Mitic 2024-11-14 14:34:03
