PAGCOR expects Philippines’ GGR to grow; cuts fees for betting platform
Philippine Amusement and Gaming Corporation (PAGCOR) Chairman and CEO Alejandro Tengco projected sustained growth and international prominence for the nation’s gaming landscape, predicting its emergence as a premier gaming jurisdiction in the Asia-Pacific region.
In his State of the Industry Address at the ASEAN Gaming Summit 2024 in Manila, Tengco underscored the pivotal role of privatisation and regulatory reforms in positioning the country as a formidable contender, second to Macau.
“These are very exciting times for the gaming industry not only in the Philippines but also in the entire Asia-Pacific region,” Tengco said.
Emphasizing the significance of local developments, he highlighted three key drivers underpinning the industry’s growth: the expansion of integrated casinos, the robust performance of electronic games, and the forthcoming privatisation of PAGCOR casinos.
GRR expected to rise, new IRs in the pipeline
The Philippines achieved gross gaming revenues (GGR) of Php285.27 billion (€4.70 billion) in 2023, surpassing pre-pandemic records.
The PAGCOR projected continued growth in 2024, with licensed casinos and electronic games contributing significantly to the anticipated GGR of Php256.63 billion and Php61.75 billion, respectively.
“We will also have at least one new IR opening every year starting with Solaire North in Quezon City which will open its doors in the first half of 2024, followed by another new IR in Clark, with several more in the pipeline including another one in Cebu,” Tengco shared.
Fees for betting platforms to be reduced by April
Moreover, Tengco announced strategic measures aimed at enhancing the Philippines’ attractiveness to gaming operators.
“Starting this coming April 1, we will lower the GGR percentage that both online and on-site betting platform operators must remit to PAGCOR by an average of 5%, which we expect should result in attracting more operators to the Philippines,” Tengco said.
Privatisation of Casino Filipino properties
Underscoring the pivotal role of privatisation, Tengco affirmed, “We need to focus on PAGCOR’s regulatory role through privatisation because this will help level the playing field and revitalize the industry.”
He outlined plans for the gradual privatization of Casino Filipino properties, envisaging a leaner and more streamlined organization focused on regulatory functions.
“Once fully privatised, PAGCOR will derive our revenues mainly from regulatory fees and licences, as well as from our gross gaming revenue shares, while we shed off fat as we become a leaner and more streamlined organisation,” he said.
