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Philippines – New projects to see Philippine gaming revenue surpass Singapore’s

By Phil - 20 March 2024

Foreign and domestic investment of $6bn and the opening of up to nine new casino resorts should see the Philippines’ casino sector reach GGR of $8bn to $9bn by 2027, taking it ahead of revenues generated by Singapore’s casino sector.

This year, licensed casinos from the Entertainment City, Metro Manila, Clark, Cebu and the Fiesta Casinos in Rizal and Poro Point are expected to contribute as much as Php256.63bn to the 2024 GGR.

PAGCOR (Philippine Amusement and Gaming Corp) Chairman Alejandro Tengco said: “If Singapore doesn’t expand, they will plateau. Don’t be surprised if next year we will surpass them. We will have continued growth because of the opening of new casinos and the expansion in the electronic gaming segment. We have about five to six years to fortify and solidify so when they open, we are mature already.”

Speaking at the ASEAN Gaming Summit, he highlighted that at least one new casino-resort will be unveiled every other year in Manila, Boracay, Clark and Cebu. Last year the Philippines casino market generated a record 285bn pesos. Chinese visitation to the Philippines fell to just 15 per cent of 2019 levels last year with players from Japan, South Korea, Malaysia and Singapore, along with Philippine nationals, stepping up in the abscence of Chinese VIPs. The aim is to attract 7.7 million foreign tourists in 2024, following just 5.45m last year.

“We expect gaming revenues to sustain growth this year and beyond with the increasing demand for leisure, travel and entertainment from both local and foreign tourists,” Chairman Tengco added. “We will also have at least one new IR opening every other year starting with Solaire North in Quezon City which will open its doors in the first half of 2024, followed by another new IR in Clark, with several more in the pipeline including one in Cebu.”

The PAGCOR chief also said the sustained growth of the local gaming industry is currently anchored on three major factors.

“These are the entry and operation of more integrated casinos, the strong performance of the Electronic Games sector, and the benefits from the planned privatization of PAGCOR casinos,” Chairman Tengco told the summit audience.

PAGCOR earlier projected that the local gaming industry will generate Php336.38bn in GGR in 2024.

Pagcor is planing to sell its operational interest in the casino sector by early 2026 for up to 80bn pesos, but it will be expanding its online presence with the launch its own online gaming platform later this year. Online gaming generated a fifth of the country’s gross gaming revenue last year with the belief that it will one day surpass physical casino revenues. The E-Games sector alone – which comprises e-casinos, e-bingo, sports betting and specialty games – is projected to contribute Php61.75bn to the 2024 GGR, making it the fastest growing sector for the next few years.

Mr. Tengco also announced that the state gaming regulator will reduce the gross gaming revenue (GGR) remittance rate by five per cent for online and on-site betting platforms starting April 1, 2024 to attract more gaming investments in the Philippines.

“The remittance rates should then average around 35 per cent (of GGR), which is quite significant because when we assumed office in August 2022, the prevailing remittance rate was over 50 per cent. We have gradually lowered them so that by April 1, our rates will be at par with global industry standards,” he explained.

The move should encourage even those who are now operating illegally to consider securing licenses from PAGCOR, which in turn should further boost PAGCOR’s licensing and regulatory revenues, he added.

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As for PAGCOR’s operations, he said, the planned privatization of its Casino Filipino properties will commence in the late part of 2025 or early 2026.

“We need to focus on PAGCOR’s regulatory role through privatization because this will help level the playing field and revitalize the industry.

“At the same time, this will allow us to ensure safe and responsible gaming while sustaining our contributions to nation-building,” the PAGCOR chief said.