Author Introduction

Fu Jun, President of Macau International Design Federation; premiered by PASA, please indicate the source for reprint.

Abstract

This article collects and integrates relevant materials about the Philippine gaming industry from government agencies, news media, journal columns, and online resources. It systematically introduces the industry from historical contexts, economic status, and current development, aiming to comprehensively showcase the Philippine gaming industry and analyze the latest development trends under the COVID-19 pandemic. Given the geographical proximity between the Philippines and Macau and some overlap in their customer bases, this paper compares their attractiveness from four perspectives: transportation convenience, visa convenience, the number of entertainment venues and gaming revenue, and tourism, intending to fill the research gaps in the academic world regarding the Philippine gaming industry, while also providing references for Macau to understand its regional competitors.

Keywords

Philippines; Gaming Industry; Online Gaming; POGO; PIGO; PAGCOR; Inplay'

Introduction

As a country where the gaming industry has developed rapidly in recent years, the Philippines holds significant growth potential for the future. However, due to significant overlap in customer sources with Macau and its policy exploration being both advanced and groundbreaking, regional competition has become increasingly fierce. However, materials about the Philippine gaming industry are mostly scattered across new media and lack systematic organization. Though a wealth of information exists on the global platform PASA (www.pasa365.com), it remains insufficiently detailed. In terms of industry data and statistics, PAGCOR, as the gaming industry's regulatory body, does not provide highly comprehensive reports. The descriptions included are inconsistent, lacking in detail and calculation methods (Leonardo, 2021), making research on the Philippine gaming industry challenging.

The purpose of this article is to organize and collect currently fragmented information to systematically review and analyze the development trajectory and current state of the Philippine gaming industry, forming a comprehensive understanding of it. On this basis, future development trends are studied, and a comparative analysis with Macau's gaming industry is conducted to provide reference for the development of Macau's gaming industry.

1. Introduction to the Philippine Gaming Industry

1.1 History of the Philippine Gaming Industry

The history of gambling in the Philippines dates back to the 18th century, initially as a form of folk entertainment. Subsequently, the Spanish colonial authorities gradually introduced activities such as lotteries and horse racing and experimentally established small casinos, leading to the thriving development of gambling activities in the Philippines. In 1930, under the auspices and supervision of the American colonial authorities, gambling began to be legalized for charitable purposes. This not only increased government revenue but also addressed some societal employment issues at the time. After the Philippines gained independence in 1946, the new government began to oversee and manage all gambling activities nationwide. By 1976, to curb the spread of illegal casino operations throughout the country, then-Philippine President Ferdinand Marcos issued a presidential decree establishing the state-controlled Philippine Amusement and Gaming Corporation (PAGCOR), to regulate and manage existing physical casinos. In 2003, the Philippines First Cagayan issued the first online gaming license, marking the beginning of legal online gaming.

Gross gaming revenue is an important data showing the development of the gaming industry. Through PAGCOR's statistics, it is noted that from 2012 to 2019, before the outbreak of the COVID-19 pandemic, the gross gaming revenue amounts in Philippine pesos were approximately 84.7 billion, 95.3 billion, 116.4 billion, 130 billion, 158.1 billion, 176.5 billion, 215.8 billion, and 256.4 billion. During these eight years, the Philippines experienced a continuous growth in total gaming revenue, with the 2019 figure reaching a historic peak, three times that of the gross gaming revenue in 2012.

In 2017, Fitch Ratings, one of the world's three major rating agencies, released the "Eye in the Sky Series: Philippines (Gaming Jurisdiction Surveillance Monitor)" report, which pointed out: "Despite the fierce competition in Asia, the Philippine gaming industry still maintains a significant advantage with a promising outlook. Although the total amount of GGR (gross revenue) is still not comparable to that of Macau, the growth trend remains the most prominent in the region during the same period."

1.2 Economic Status of the Gaming Industry in the Philippines

The overall economic development of the Philippines in recent years has generally shown a positive trend, with GDP steadily rising. According to data from the World Bank and the International Monetary Fund, the Philippines has ranked fourth in ASEAN since 2015 in terms of GDP, surpassing Singapore in 2019-2020 to become the third largest in ASEAN, with a GDP growth rate of 7.7% in the first three quarters of 2022, temporarily ranking third in ASEAN.

As an emerging economy, the secondary and tertiary industries in the Philippines have remained relatively stable in terms of their share of GDP, with small fluctuations. Through analysis of historical data from the MacroMicro website, the tertiary industry in the Philippines accounted for about 60% of its GDP. As a sub-indus