Philippine Gaming Industry Revenue Soars 19% to $3.3 Billion in First Half of 2024
The Philippine gaming industry witnessed a significant surge in revenue during the first half of 2024, reporting a year-on-year growth of 19.2%. According to the latest figures released by the Philippine Amusement and Gaming Corporation (PAGCOR), the industry’s total revenue reached Php194.7 billion (US$3.34 billion) for the period. This impressive growth has been largely driven by the burgeoning online gaming sector, which includes E-Games, E-Bingo, and bingo operations.
Online gaming sector drives growth:
A key highlight from PAGCOR’s report is the exceptional performance of the E-Games sector. Gross gaming revenue (GGR) for E-Games more than tripled, reaching Php63.01 billion (US$1.08 billion) in the first half of 2024. This surge underscores the significant domestic demand for online gaming platforms and the increasing popularity of these digital gaming options among Filipino players.
Licensed casinos, encompassing major establishments in Entertainment City and regional venues in Clark and Cebu, contributed the largest share of GGR, amounting to Php99.2 billion (US$1.70 billion). However, PAGCOR-operated casinos did not fare as well, with their GGR declining by 11.6% year-on-year to Php8.9 billion (US$152 million). Despite this decline, the overall growth in the gaming sector remains robust.
PAGCOR’s financial performance in the first half of 2024 was notably strong. The organization reported a net income of Php6.56 billion (US$112 million), marking a substantial 121.5% increase from the Php2.96 billion (US$50.7 million) reported during the same period in the previous year. As Inside Asian Gaming reports, PAGCOR Chairman and CEO Alejandro H. Tengco highlighted the importance of this growth, stating, “PAGCOR’s robust net income growth translates, of course, to a larger Contribution to Nation-Building (CNB). We were able to remit Php31.8 billion (US$545 million) in CNB to the Treasury in the first six months compared to Php22.6 billion (US$387 million) in the same period last year.”
Revenue breakdown:
PAGCOR reported total gross revenues of Php51.8 billion (US$887 million) for the first half of 2024, reflecting a 42.9% year-on-year increase. Gaming operations were the primary revenue driver, contributing Php45.4 billion (US$778 million). Notably, nearly half of PAGCOR’s gaming revenue stemmed from the online gaming sector, which generated Php20.7 billion (US$355 million). Integrated resorts and licensed casinos contributed Php16.2 billion (US$277 million), accounting for 35.4% of PAGCOR’s gaming revenues, while PAGCOR-operated casinos under the Casino Filipino brand added Php6.93 billion (US$119 million), making up 15.3% of the total.
With the first half results setting a strong precedent, PAGCOR is optimistic about achieving its annual revenue targets. Tengco expressed confidence in reaching the Php100 billion (US$1.71 billion) gross yearly revenue threshold, citing the phenomenal growth in the E-Games sector and increasing interest from both players and investors in the Philippine market. “Given the phenomenal revenue increase in the E-Games sector, and with more players and investors signifying their intent to enter the Philippine market, we are confident that the year 2024 will be truly a banner year for PAGCOR,” he said, as Asia Gaming Brief reports.
The significant revenue growth in the Philippine gaming industry, driven by the rise of online gaming and steady contributions from licensed casinos, positions the sector for continued success throughout the year. PAGCOR’s substantial net income growth and optimistic outlook further underline the sector’s resilience and potential for sustained expansion.