Philippines gambling revenue up 37.5% in Q3 on online growth
Data published yesterday (14 November) by the Philippines Amusement and Gaming Corporation (Pagcor) shows revenue hit PHP94.61 billion (£1.27 billion/€1.53 billion/$1.61 billion) during Q3. This is clear of the PHP68.79 billion reported last year and 2.7% higher than Q2 this year.
The stand-out result in Q3 was the PHP35.71 billion generated from electronic (or online) gaming, a rise of 465.0%. The Philippines electronic gaming cover activities such as online casino, sports betting, bingo and specialty games.
PAGCOR chairman and CEO Alejandro Tengco talked up the “phenomenal” increase. He said he expects the sector to continue to grow and reach its end-of-year PHP100 billion revenue target in 2024.
“This impressive performance is a strong indication that the use of modern technology and mobile gadgets in gaming and amusement will continue to play a pivotal role in shaping the future of gaming,” Tengco said.
“In fact, by year-end, we expect this sector to generate as much as PHP78 billion in licence fees alone. This will substantially contribute to the realisation of our PHP100 billion revenue target for 2024.”
Not so good news for land-based gambling in Q3
While growth in the online gaming sector shows no signs of slowing, the same cannot be said for land-based gambling. Declines across the land-based gambling sector are in line with similar trends seen elsewhere in recent quarters.
In Q3, revenue from land-based licensed casinos fell 2.3% year-on year to PHP50.72 billion. Casinos, however, remain the primary source of local gambling revenue in the Philippines, but given ongoing growth in the online sector, their position could soon be under threat.
Also reporting a decline were gaming venues, with revenue falling 26.3% to PGP3.64 billion in Q3. This was in contrast to last year’s record quarterly figure of PGP4.64 billion.
Finally, revenue from bingo operations in the country declined 19.4% to PHP4.52 billion for the quarter.
POGOs nearing the end in the Philippines
Ongoing growth in online comes just weeks before a ban on Philippine Offshore Gaming Operators (POGOs) becomes fully effective.
President Ferdinand Marcos Jr in July ordered Pagcor to halt all POGO operations by the end of the year. He said this was necessary to prevent further “grave abuse and disrespect” to Philippines laws.
Marcos accused the sector of facilitating illicit activities such as financial scamming, money laundering, human trafficking, kidnapping, torture and murder.
POGOs have proved controversial in the Philippines amid reports of links to serious crimes in the country. Over 1,000 computers were seized from CGC Technologies in May 2023 after accusations of credit card fraud and human trafficking.
“Disguising as legitimate entities, their operations have ventured into illicit areas furthest from gaming such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture, even murder,” Marcos said upon announcing the ban.