Philippine Gaming Industry Set to Break Records with PHP350 Billion Revenue in 2024
The Philippine gaming industry is on track to achieve a record-breaking gross gaming revenue (GGR) of PHP350 billion (approximately $6 billion) by the end of 2024. This growth has been driven largely by the booming online gaming sector, surpassing the initial government target of PHP334 billion and outpacing the PHP285 billion recorded in 2023.
Record Growth Fuelled by Online Games
Online games have been the primary driver of this unprecedented growth, contributing 70% of GGR during the third quarter of 2024, according to Morgan Stanley. The Philippine Amusement and Gaming Corporation (Pagcor) reported a 37.52% year-on-year increase in GGR for Q3, amounting to PHP94.61 billion, compared to PHP68.79 billion in 2023.
Pagcor chairman and CEO Alejandro Tengco highlighted the surge in electronic gaming revenue, which soared 464.38% from the previous year. Revenue in this category reached PHP35.71 billion in Q3, a significant jump from PHP6.32 billion during the same period in 2023. Tengco attributed the rise to advancements in technology and the widespread use of mobile devices.
“This impressive performance underscores the pivotal role of modern technology and mobile gaming in shaping the future of the industry,” Tengco stated.
Challenges Ahead for Sustained Growth
Despite the remarkable performance, analysts caution that the growth may be temporary. Pagcor has issued over 1,000 licenses to igaming sites in 2023, with more applications under review. While these policy changes boosted the number of gaming operators, increased licensing and regulatory fees could temper future growth.
POGOs Exit Amid Controversy
This year also marked the end of Philippine Offshore Gaming Operations (POGOs), which primarily catered to foreign players. POGOs faced scrutiny for their alleged involvement in illegal activities, including fraud, money laundering, and human trafficking. President Ferdinand Marcos Jr ordered the industry’s shutdown, with all operations to cease by 31 December 2024.
Pagcor has confirmed that only a few POGO operators remain active and will be fully phased out by the new year.
Pagcor’s New Headquarters
In a related development, Pagcor is preparing to move into a state-of-the-art 40,000sqm headquarters in Pasay City. The facility, located near Ninoy Aquino International Airport and the Entertainment City casino zone, is part of a 25-year lease agreement with San Miguel Infrastructure.
“This project is more than just a building; it’s a testament to Pagcor’s commitment to excellence and creating a world-class environment for its employees,” Tengco remarked.
The industry’s rapid growth, coupled with significant regulatory changes, marks a transformative period for the Philippine gaming sector.
