The online gaming industry in the Philippines has seen a staggering surge, surpassing previous years’ performances and setting new records in 2023. With a remarkable 92.3% increase from the prior year, the sector’s revenue skyrocketed to PHP58.16 billion, well above the PHP30.24 billion generated in 2022. This impressive figure also eclipsed the previous annual peak of PHP32.24 billion recorded in 2019 by a substantial 80.4%.
The Philippine Amusement and Gaming Corporation (Pagcor), which oversees regulated igaming in the Philippines, covers a wide array of online entertainments, counting online games, bingo, specialty games, and sports betting within its portfolio.
Alejandro Tengco, the chairman of Pagcor, proudly announced these groundbreaking numbers at last week’s ICE London 2024 event. He attributed the dramatic rise in revenue to a series of recent policy reforms enacted within the country that have provided a more favorable environment for the gaming industry.
Adding to the sector’s milestones, Tengco disclosed that the Philippines has hit a new record in terms of licensed igaming sites, with over 1,000 websites currently active and numerous applications still awaiting approval. Tengco explained this increase as a direct outcome of the current management’s policy amendments, which included a reduction in licensing rates, fueling the upsurge in approved online gaming establishments.
The flourishing e-games sector has not only significantly contributed to the local gaming industry but has also been instrumental in bolstering Pagcor’s revenue collection efforts.
Looking ahead to 2024, additional policy modifications are in the pipeline to promote further revenue growth. Tengco anticipates that continued lowering of licensing rates and other strategic changes will propel the igaming revenue to an estimated PHP61.75 billion for the following year.
This revelation arrived nearly a month after Pagcor also reported record revenue for the entire Philippines market in 2023, wherein the total revenue collection across the country amped up to PHP285.00 billion. This was an increase of 11.2% from the previous record set in 2019. The igaming sector’s contribution was substantial, accounting for 20.4% of the national revenue.
In a statement made last month, Tengco projected that revenue would likely continue its ascent in 2024. The anticipated revenue for the upcoming year stands at PHP336.00 billion, marking an increase of 17.9% year-on-year. This optimistic forecast is largely attributed to the planned opening of several new integrated resorts.
The remarkable revenue surge in 2023 comes after Tengco’s previous confidence, expressed in November of the prior year, that the gambling industry in the Philippines was nearly restored to pre-pandemic conditions.
Regarding the long-term outlook for gambling in the country, Tengco shared his confidence about the Philippines’ potential to become a major gaming hub in Southeast Asia. In a conversation with VOX, he expressed that the country, which is the only jurisdiction in the region to have regulated both land-based and igaming, is poised for great promise in the gaming sector.
The consistent growth and innovation in the online gaming domain in the Philippines underscore the sector’s rapidly developing landscape and the significant role it plays in the country’s economic expansion. The proactive measures taken by the governing bodies, coupled with strategic policy reforms, provide a solid foundation for further successes and heights that online gaming in the Philippines is yet to reach in the upcoming years.
