Privatisation and regulatory reforms should position the Philippines as one of the most attractive gaming jurisdictions, not only in Southeast Asia region, but in the Asian Pacific sphere in in the near and middle term, only surpassed by Macau, Alejandro H Tengco, Chairman and CEO of PAGCOR said today.
Tengco made the comments during a State of the Industry Address held in the 6th ASEAN Gaming Summit, one year after his latest address to the industry.
The public gaming operator and watchdog regulates commercial casinos across the country, and in special economic areas like the Clark Freeport Zone in Central Luzon, while also operating casinos on the state’s behalf under the Casino Filipino brand.
PAGCOR expects gross gaming revenue to reach a new high of PHP336 billion (US$6.1 billion) this year, up from last year’s record of approximately $5.1 billion, which was already a 11 percent increase from the previous year and better results than in pre-pandemic times.
“We expect gaming revenue to sustain growths this year and beyond, with the increase for entertainment for both local and foreign tourists. Revenue from our licensed casinos in Entertainment City, Clark, Metro Manila, Cebu and Fiesta casinos in Rizon are expected to contribute PHP257 billion ($4.6 billion) to our GGR in 2024,” Tengco noted.
“Meanwhile, e-casinos, e-bingo, and sports betting together are projected to contribute PHP61.7 billion pesos ($1.1 billion) to the 2024 GGR, making it the fastest growing sector in the last few years.”
The PAGCOR chairman, highlighted that the sustainable growth of the country’s gaming setcor was anchored in three major factors namely: the opening of more integrated resorts, the strong performance of the electronic gaming sector and the privatisation of PAGCOR-operated casinos.
Tengco even encouraged those “who are not operating illegally” to consider securing licenses from PAGCOR, so the operator can further boost its licensing and regulatory revenues.
PAGCOR’s Casino Filipino properties, starting in late 2025 to early 2026, a move that according to Tengco will help “level the playing field and revitalize the industry”.
“Once fully privatized, PAGCOR will derive its revenues mainly from regulatory fees and licenses, as well as from our growth gaining revenue shares, which we sell. As we shed our fat, we will become a leaner and more streamlined organisation,” he underlined.
Starting April 1, the operator will implement lower percentage license fees for both online and on-site betting platforms, with gaming operators to remit to PAGCOR on the average rate of 35 percent, about 5 percent lower than the current rate.
“This is quite significant. Because when I assumed office in the last second half of 2022, the prevailing license fees, then we’re over 50 percent. We have gradually lowered them so that by April, our rates would be in par with global industry standards.” he noted.
New IR openings are also expected for this year with Bloomberry having announced this month the opening of the new $1 billion Solaire Resort North in Quezon City in May, while other projects for Cebu and Clark are in the pipeline.
