The Philippines Amusement and Gaming Corporation (PAGCOR) saw a 32% increase in total gaming revenue (GGR) in the second quarter of 2024, primarily due to the significant growth in the electronic gaming (e-games) sector. This sector's revenue increased by 525% year-on-year, setting a new record.
PAGCOR reported that its GGR for the second quarter reached PHP 89.23 billion, a 32.32% increase from PHP 67.43 billion in the same period of 2023, and a 9.21% increase from PHP 81.7 billion in the first quarter.
PAGCOR Chairman and CEO Alejandro Tengco noted that the robust performance of the electronic gaming sector helped offset any revenue shortfall resulting from President Ferdinand “Bongbong” Marcos Jr.'s order to prohibit Philippine Offshore Gaming Operators (POGOs) by the end of the year.
President Marcos announced the prohibition of POGOs in his third State of the Nation Address and ordered PAGCOR to terminate all related operations by the end of the year. According to a cost-benefit analysis by the Philippine Department of Finance (DOF), in 2021, the POGO industry incurred a net cost of PHP 99.52 billion to the Philippine economy, which is equivalent to 0.41% of the national economy.
Even though the total costs of the POGO industry reached PHP 265.74 billion, its total contribution to the economy was PHP 166.49 billion, including PHP 4.065 billion in direct profits.
In contrast, licensed casinos generated revenue of PHP 49.48 billion in the second quarter, which was lower than PHP 51.7 billion in the same period of 2023 and also a 10.41% decrease from PHP 46.9 billion in the first quarter. In addition, revenue from the “Casino Filipino” brand operated by PAGCOR amounted to PHP 4.2 billion, a 14.8% decrease from the previous year and a 10.41% drop from the previous quarter.
In 2023, PAGCOR announced plans to gradually privatize state-operated casinos and shift its focus to purely regulatory roles. PAGCOR expects to raise at least PHP 60 billion to PHP 80 billion through these initiatives.
Under its mandate, PAGCOR is tasked with regulating the gaming industry, generating income for Philippine government social welfare and national development projects, and helping to boost tourism. Over the next five years, PAGCOR plans to gradually exit casino operations and expects that a new integrated resort will open each year.
