Igaming drives Philippines gambling revenue up 24.6% in 2024

Gross Gambling Revenue (GGR) in the Philippines witnessed an impressive 24.6% year-on-year increase in 2024, largely fueled by a remarkable 165% growth within the country’s igaming sector.

The total GGR for 2024 soared to PHP 410 billion (£5.51 billion/€6.56 billion/$7.16 billion), significantly surpassing the PHP 329 billion reported in the previous year. This achievement marks a historic high for the Philippine gambling landscape.

Alejandro Tengco, Chairman and CEO of the Philippine Amusement and Gaming Corporation (Pagcor), unveiled these compelling statistics during his keynote address at the ASEAN Gaming Summit on March 18, 2024.

Tengco attributed this substantial increase primarily to the burgeoning igaming sector, which generated PHP 154.51 billion in GGR—an all-time record for the country, showcasing a dramatic rise of 165% year-on-year.

Referred to as “E-Games” by Pagcor, this sector encompasses a diverse array of online casino offerings and internet-based bingo. The growth trajectory was so rapid that the igaming sector reached its full-year target of PHP 100 billion by September, well ahead of schedule.

Despite this impressive expansion, traditional land-based casinos remain the cornerstone of revenue generation. In 2024, licensed casinos contributed PHP 201 billion in GGR.

Impact of Reduced Igaming Rates

Tengco highlighted that strategic policy adjustments have played a crucial role in fostering this online growth. In particular, recent amendments that included a gradual fee reduction for igaming operations throughout 2023 were instrumental in driving this upward trend.

In January 2024, Pagcor announced yet another reduction in fees, lowering the applicable rate to 30% of GGR from the previous 35%. Prior to 2023, the rate had reached as high as 55%, making this change particularly significant for operators.

According to Tengco, the fee reductions incentivized unregistered operators to enter the regulated market, thereby preventing voluntary closures and supporting the sustained profitability of licensed entities. This regulatory shift coincided with the notable closure of Philippine Offshore Gaming Operators (POGOs), as announced by President Ferdinand Marcos Jr. in July, with the new policy taking effect in November.

Market Resilience Amid POGO Exits

President Marcos has accused the POGO sector of facilitating various illicit activities, including financial scams, money laundering, human trafficking, and violence. In light of these concerns, Pagcor welcomed the government’s decision to phase out POGOs.

Despite this significant reshaping of the industry, Tengco assured stakeholders that the gaming landscape remains “robust.” He stated, “As offshore gaming exits, Pagcor recognizes that the future of Philippine gaming will increasingly become technology-driven.”

Furthermore, he emphasized that Pagcor will rigorously regulate electronic gaming operations to combat illegal activities while maintaining a commitment to responsible gaming and market integrity.

As Tengco remarked, “The best days of Philippine gaming are still ahead of us. We look forward to collaborating with all stakeholders to shape the future of this promising industry.”