As the Philippines undertakes structural reforms in its gaming regulatory system, the country's gaming industry continues to show significant growth momentum in the first quarter of 2024. Especially, the rapid development of the iGaming (online gaming) sector has become a key driver of revenue growth.
According to data released by the Philippine Amusement and Gaming Corporation (PAGCOR), the total gaming revenue in the first quarter of 2024 reached 28 billion Philippine pesos (approximately 503 million US dollars), an increase of 11.2% year-on-year, exceeding the government's target by 4.45%. Among them, gaming operations and licensing fees contributed 25.53 billion pesos, accounting for 91% of the total revenue, with the remainder coming from operating income and service fees.
Electronic games and electronic bingo games lead the revenue structure
In terms of revenue structure, electronic games and electronic bingo games contributed the most, generating a total of 14.32 billion pesos, accounting for 56%. The remaining 44% came from licensed physical casinos and casinos operated by PAGCOR itself, contributing 11.2 billion pesos. The overall net profit was 4.22 billion pesos, up 23% year-on-year, marking a dual improvement in efficiency and profitability in the industry.
PAGCOR Chairman and CEO Alejandro H. Tengco commented, "This performance reflects the results of PAGCOR's continuous investment in fiscal discipline and responsible governance." He noted that PAGCOR's financial contribution to national construction in the quarter reached 18.9 billion pesos, an increase of 21.5% year-on-year.
Regulatory mechanism reform continues to advance, iGaming builds a new order
As part of ongoing reforms, PAGCOR recently announced that it will expand its regulatory authority to third-party service providers. On April 30, Jeremy B. Luglug, Assistant Vice President of the Electronic Gaming Licensing Department, announced the introduction of the "Gaming Affiliate and Support Service Provider Certification Regulatory Framework," which will implement an official certification system for third-party service providers involved in payment processing, marketing, identity verification (KYC), and testing laboratories.
This new regulation aims to strengthen the regulation of upstream and peripheral services in the iGaming industry, marking another step towards "comprehensive compliance" in Philippine gaming governance.
Institutional integrity and modernization of governance are releasing attractiveness
It is worth noting that, in addition to strengthening regulation, the Philippine government is also committed to enhancing the governance image of the entire gaming industry. In 2023, President Marcos halted the POGO (Philippine Offshore Gaming Operators) business due to social issues caused by offshore gaming. Subsequently, the Philippines significantly improved its anti-money laundering and anti-terrorism financing regulations, and successfully exited the FATF grey list in February 2024.
This achievement has strengthened the Philippines' international image as a responsible gaming jurisdiction, enhancing its attractiveness to foreign direct investment and multinational operators.
Separation of regulatory and operational functions: PAGCOR asset divestiture underway
Furthermore, PAGCOR is also promoting its own role transformation, gradually exiting the casino operation business. For a long time, PAGCOR's dual role as both regulator and operator has raised questions about conflicts of interest. Currently, the agency plans to sell its 45 gaming halls (including 9 Casino Filipino brand casinos), expected to bring up to 50 billion pesos in fiscal revenue to the nation.
Although the sale process was originally scheduled to start in 2024, according to the latest progress, the asset divestiture is expected to be completed by 2026, marking an important step in the modernization of Philippine gaming regulation.
