Philippine gaming revenue spiked in Q2
The Philippine gaming industry has experienced a remarkable 32.32% surge in revenue during the second quarter, largely fueled by e-games. This growth is expected to mitigate the financial impact of the cessation of Philippine Offshore Gaming Operators (POGOs). In a controversial move, certain lawmakers have suggested the legalization of e-sabong—online cockfighting—as a potential revenue source.
In a recent report from the Philippine Amusement and Gaming Corporation (Pagcor), the Gross Gaming Revenue (GGR) for this quarter reached an impressive P89.23 billion (approximately £1.22 billion, €1.428 billion, or $1.563 billion), marking a significant quarter-on-quarter increase of 9.21%.
While land-based casinos generated P49.48 billion in revenue, a decline from P51.7 billion the previous year, Pagcor’s own Casino Filipino establishments contributed P4.2 billion—down 14.7% from the same period in 2022. Additionally, the bingo sector recorded P4.69 billion, a drop from P5.85 billion in the same timeframe last year.
E-Games Experience Unprecedented Growth
An outstanding highlight of this quarter is the electronic gaming sector, which has seen a staggering growth of 525% year-over-year, accumulating nearly P31 billion in revenue. Pagcor Chief Alejandro Tengco emphasized that e-games are “continually surpassing targets,” and are poised to compensate for any revenue losses linked to the ban on offshore gaming operations.
Recently, President Ferdinand Marcos Jr. issued a directive to ban POGOs, mandating an immediate cessation of operations and a complete wind-down by the end of 2024.
Analyzing the Impacts of the POGO Ban
POGOs were introduced in 2016 and have been marred by associations with illegal activities such as online scams, human trafficking, money laundering, and even murder. The ban is anticipated to result in a loss of approximately P20 billion in annual revenue. Critics of POGOs argue that the costs incurred to monitor this high-risk industry were nearly equivalent.
Moreover, the shutdown is projected to displace up to 30,000 Filipinos from their jobs and severely impact the real estate rental market—underscoring the significant economic ramifications of this controversial decision.
E-Sabong: A Controversial Proposal for Revenue Generation?
A number of lawmakers have ignited debate with suggestions to regulate e-sabong, or online cockfighting, as a viable avenue for revenue generation. Deputy Speaker and Quezon Representative David Suarez posited that legalizing e-sabong could unlock substantial income for the government. “How can we properly regulate this to ensure the government earns revenue?” he questioned during discussions.
Representative Marissa Magsino echoed this sentiment at a Pagcor budget meeting, stating, “E-sabong is already occurring everywhere. It’s more prudent to legalize it rather than allow it to persist in an unregulated state, depriving us of potential income.”
However, in response to these discussions, the Philippine Inquirer described the proposal as “outrageous.” They highlighted the 2021 disappearance of over 30 “sabungeros” or cockfight organizers, who reportedly disappeared amid conflicts with industry leaders. Following the blood sport’s ban in 2022 by former President Rodrigo Duterte, these individuals have never been found.
The editors of the Inquirer characterized the proposal to reinstate legal e-sabong as a “terrifying reminder of our politicians’ short memories,” cautioning that it would merely replace one dangerous platform with another, steeped in associations with human trafficking, torture, and fraudulent activities. They aptly noted, “Talk about jumping out of the frying pan into the fire.”
