The Philippine gaming sector has demonstrated remarkable resilience and growth, posting a significant 25% increase in Gross Gaming Revenue (GGR) to Php410 billion in 2024, despite the stringent regulatory measures against Philippine Offshore Gaming Operators (POGOs). This was highlighted by Alejandro H. Tengco, Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR), at the prestigious ASEAN Gaming Summit.

Robust growth across sectors:

The traditional brick-and-mortar casinos continued to play a crucial role in the economic landscape, contributing Php201 billion to the GGR. However, the standout performer was the electronic gaming sector, which includes E-Games and E-Bingo, witnessing a staggering 165% growth year-on-year, resulting in Php154.51 billion in generated revenue.

This exponential growth in electronic gaming can be largely attributed to PAGCOR’s strategic fiscal policies, particularly the reduction of license fees. “In the past, the high license fees, ranging from 50 to 55%, were a deterrent to the expansion of the e-games sector,” Mr. Tengco explained. Effective January 1, 2025, these fees have been reduced to 30% of GGR, a move that has not only facilitated the entry of unregistered operators into the regulated market but also bolstered the profitability of existing operators.

The recalibration of fee structures is just one aspect of PAGCOR’s broader strategy aimed at fostering a more sustainable and ethically sound gaming industry. “As we navigate away from offshore gaming, it is imperative that the future of Philippine gaming pivots towards being more technology-driven,” stated Tengco in PAGCOR’s press release. He emphasized the agency’s unwavering commitment to stringent oversight, which is essential to thwart illegal gaming activities and uphold responsible gaming standards.

Asia’s gaming landscape and future outlook:

The Philippines has ascended to become the second-largest gaming market in Asia, only behind Macau. This achievement is particularly noteworthy given the backdrop of the offshore gaming ban implemented by President Ferdinand R. Marcos Jr. Mr. Tengco’s projections for 2025 are optimistic, with anticipated GGR figures ranging from Php450 billion to Php480 billion, spurred by ongoing innovations in electronic gaming and enhanced performances at integrated resorts.

The proactive measures taken by the gaming sector have significantly contributed to the Philippines’ removal from the Financial Action Task Force’s (FATF) “grey list” in February 2025. This delisting is a testament to the nation’s successful enhancement of its anti-money laundering and counter-terrorism financing protocols.

The ASEAN Gaming Summit, orchestrated by Asia Gaming Brief at the Shangri-La The Fort, Manila, remains a critical platform for industry leaders to deliberate on trends, tackle challenges, and uncover new opportunities within the evolving gaming landscape of the region. “The best days of Philippine gaming are still ahead of us,” Mr. Tengco remarked, signaling a positive and ambitious outlook for the future of the industry.