PAGCOR sees revenue rising to P336 B this year
The Philippine Amusement and Gaming Corporation (PAGCOR) expects E-Games and new integrated resorts to boost revenues to P336.38 billion this year even as it reported record high gross gaming revenues (GGR) of P285.27 billion for 2023.
In an interview, PAGCOR Chairman and CEO Alejandro H. Tengco said last year's GGR is 11.22 percent higher than the previous record of P256.49 billion set in 2019 before the Covid-19 pandemic outbreak in 2020 when gaming revenues fell steeply because of movement restrictions.
“Our 2023 results exceeded even our most optimistic projections, and it proves beyond doubt that the Philippine gaming industry has fully recovered and is now poised for sustained growth in the medium- to long-term,” Tengco said.
He added that the latest numbers also make the Philippine GGR projection of P336.38 billion for 2024 more achievable, especially with the scheduled opening of new integrated resorts this year.
Tengco said the industry posted an all-time GGR low of P98.79 billion at the height of the pandemic in 2020. The following year, however, GGR slightly climbed to P113.09 billion before nearly doubling to P214.33 billion in 2022, setting the stage for this year’s record-setting haul.
“Last year’s accomplishment is solid proof of the local gaming industry’s adaptability and resilience which translates to PAGCOR’s enhanced ability to fulfill our nation-building mandates,” he said.
Tengco said the country’s integrated resorts are still the biggest contributors to the gaming industry’s revenue pie with a P207.48 billion take in 2023 followed by the fast rising Electronic Games sector with P58.16 billion.
PAGCOR-operated casinos under the Casino Filipino brand contributed P19.62 billion to the 2023 numbers.
“We are projecting that our licensed casinos from the Entertainment City, Metro Manila, Clark, Cebu and the Fiesta Casinos in Rizal and Poro Point will contribute as much as P256.63 billion to our 2024 GGR,” he said.
Meanwhile, e-casinos, e-bingo, sports betting and specialty games that together make up the E-Games sector are projected to contribute P61.75 billion in 2024 and should be the fastest growing sector in the next few years, Tengco said.
“We are really excited with the phenomenal growth of E-Games in the Philippines and this is where PAGCOR will be betting,” he added.
Meanwhile, Tengco said PAGCOR will continue to allow the POGO industry to operate but will be more stringent in its regulation noting that their focus on regulation has resulted in revenues of P2.99 billion in 2022. This rose 74 percent in 2023 to P5.2 billion.
He noted that, aside from revenues generated by POGOs for PAGCOR, the POGO industry also generates revenues for the Bureau of Internal Revenues as well as support the real estate industry and providers of ancillary services.
“From its peak of 1.8 million square meters of office space leased, the POGO industry currently accounts for about 600,000 square meters of lease office spaces and this translates to about P5 billion in revenues for real estate companies,” Tengco said.
He added, “this does not even include yet the leases for residential spaces occupied by POGO workers as well as revenues and employment generated by service providers such as transport, restaurants, and security.”