The Philippine gaming industry is on track to surpass last year’s gross gaming revenue (GGR) record, largely due to the popularity of online gaming.
The industry is expected to generate PHP350 billion (£4.67 billion/€5.645 billion/$6 billion) in GGR by the end of 2024. This projection not only exceeds the government’s initial target of PHP334 billion but also marks a significant increase from the PHP285 billion recorded in 2023.
### Temporary Growth Spike
A report by [Morgan Stanley](https://www.morganstanley.com/what-we-do/research/) indicates that online games accounted for 70% of the GGR in the third quarter. This analysis is based on data from the [Philippine Amusement and Gaming Corporation](https://www.pagcor.ph/index.php) (PAGCOR). On November 14, PAGCOR announced a 37.52% increase in GGR for the period, reaching PHP94.61 billion compared to PHP68.79 billion in 2023.
The surge in electronic gaming revenue was highlighted by PAGCOR’s chairman and CEO, Alejandro Tengco, who stated that it grew by an impressive 464.38% over the previous year. Revenues in this area rose to PHP35.71 billion from merely PHP6.32 billion in the third quarter of 2023.
Tengco remarked, “This remarkable performance demonstrates the pivotal role that modern technology and mobile devices will continue to play in shaping the future of gaming.”
However, Morgan Stanley cautioned that this growth might not last, as PAGCOR is accumulating licensing and other fees from new operators. In 2023, the regulator licensed over 1,000 iGaming sites, with more applications on the way.
“The recent policy changes by current management have led to a significant increase in gaming sites,” Tengco noted. “We’ve also approved lower licensing rates, which has contributed to the rise in site approvals.”
### Challenges Sans POGOs
The year has been tumultuous for the Philippine gaming sector, notably due to the elimination of Philippine Offshore Gaming Operations (POGOs). These entities, initiated in 2016 alongside domestic online gaming operations, catered primarily to foreign gamblers, especially in China. This year saw numerous POGOs implicated in online scams and serious crimes such as kidnapping, human trafficking, money laundering, and torture.
In July, President Ferdinand Marcos Jr. banned POGOs, ordering their complete exit by December 31. PAGCOR reports that [only a few operations](https://igamingbusiness.com/gaming/online-casino/pogos-down-to-17-as-deadline-approaches/) remain and will be concluded by the end of the year.
In related developments, PAGCOR is set to move into a new [40,000-square-meter headquarters](https://www.pagcor.ph/press-releases/pagcor-smc-infrastructure-ink-landmark-lease-deal-for-nayong-pilipino-property.php) in Pasay City, near Manila’s Ninoy Aquino International Airport and the Entertainment City casino zone. The regulator has secured a 25-year lease for this property with San Miguel Infrastructure (SMC).
“This venture is more than just a building,” Tengco declared. “It symbolizes PAGCOR’s dedication to providing a world-class work environment for its employees and reflecting our core values and ambitions.”