Gaming industry in the Philippines experiences a 23% growth during the first quarter of the year.
Philippine Amusement and Gaming Corporation (PAGCOR) posts impressive Q1 revenue
The Philippine Amusement and Gaming Corporation, the country's gaming regulator, knocked it out of the park in Q1 with earnings of PHP28 billion ($502.9 million), a 11.2% year-on-year increase, surpassing the government's target by 4.45%.
Gaming operations and license fees contributed a whopping 91% of the total earnings, amounting to PHP25.53 billion. The remaining percentage came from business income and service fees. Expenses took a nose dive, dropping 15.5% to PHP6.22 billion, down from PHP7.36 billion last year.
Electronic games and e-bingo dominate revenue
More than half of gaming revenue, approximately 56%, came from electronic games and e-bingo, totaling around PHP14.32 billion. Casinos (both licensed and PAGCOR-operated) accounted for 44%, generating PHP11.2 billion. The net income for these sectors soared by 23% year-on-year, reaching PHP4.22 billion.
"This robust performance mirrors PAGCOR's unwavering dedication to responsible governance and financial prudence," said Alejandro H. Tengco, the CEO and Chairman of PAGCOR.
PAGCOR's nation-building contributions reached PHP18.9 billion over the period, a 21.5% increase from the previous year, Tengco added.
Regulation of third-party vendors on the horizon
Last week, PAGCOR announced its plan to expand its regulatory authority over third-party vendors. In a 30 April notice, the Electronic Gaming Licensing Department's Assistant Vice President, Jeremy B. Luglug, hinted at the forthcoming release of a Regulatory Framework for the Accreditation of Gaming Affiliates and Support Service Providers.
This development marks a significant step in the ongoing cleanup of the Philippine gaming industry, the third-largest contributor to the national treasury after the internal revenue and customs bureaus.
According to the framework, third-party providers like payment processors, marketers, and Know Your Customer (KYC) solution providers, among others, will be subject to direct accreditation by PAGCOR.
Enhancing probity to attract investment
Last year, President Ferdinand Marcos suspended Philippine Offshore Gaming Operations due to allegations of rampant crime. In February, following drastic improvements in its anti-money laundering, counter-terrorism, and proliferation financing frameworks, the Philippines was removed from the Financial Action Task Force grey list of countries at greater risk for money laundering.
By aligning the Philippines with other highly regulated gaming jurisdictions and strengthening its appeal to international investors, this strategy is anticipated to increase investment opportunities in the gaming sector.
PAGCOR is also pursuing a long-term goal to divest its portfolio of casinos, addressing criticisms of the body's dual role as a regulator and an operator. The sale of 45 PAGCOR gaming halls, including nine under the Casino Filipino brand, could yield PHP50 billion for the regulator. The initial plan to begin the sell-off this year has been revised, with completion now expected in 2026.
- With electronic games and e-bingo generating approximately 56% of the total revenue, it seems the casino-and-gambling sector, including casinos and casino-games, played a significant role in PAGCOR's impressive Q1 revenue.
- The regulatory framework for the accreditation of third-party vendors, such as payment processors, marketers, and Know Your Customer (KYC) solution providers, is set to be introduced by PAGCOR, aiming to strengthen its regulatory authority and attract more sports-betting and lotteries investments.
- Tengco, the CEO and Chairman of PAGCOR, announced that PAGCOR's nation-building contributions increased by 21.5% to PHP18.9 billion, demonstrating the organization's commitment to reinvesting its revenue for the nation's benefit.
- In a bid to enhance probity and attract investment, PAGCOR aims to realign its image by addressing criticisms of its dual role as a regulator and a casino operator, with the sale of 45 PAGCOR gaming halls expected to yield PHP50 billion in revenue.
- The suspension of Philippine Offshore Gaming Operations (POGO) last year and the subsequent improvements made to anti-money laundering, counter-terrorism, and proliferation financing frameworks have positioned the Philippines as a more attractive investment destination for the international gambling trends, including sports betting.
