The Philippine gaming industry’s gross gaming revenue could fall by as much as 19 percent this year, as Middle East tensions and tighter online gambling curbs weigh on demand, Philippine Amusement and Gaming Corp. (PAGCOR) Chairman and CEO Alejandro H. Tengco said.
‘Personally, I believe that it will be a lower GGR compared to 2025. Probably we are looking at maybe PHP320 billion to PHP350 billion ($5.20 billion to $5.68 billion),’ Tengco said on the sidelines of the SiGMA Asia Summit on Tuesday, as reported by local media outlet BusinessWorld.
The industry generated PHP396.14 billion ($6.43 billion) in gross gaming revenue last year.
Tengco attributed part of the projected decline to the removal of e-wallet links to online gambling sites, a change that hit the electronic gaming segment hardest. The segment’s gross gaming revenue tumbled 22.43 percent to PHP39.9 billion ($648 million) in the first quarter.
The central bank last year directed banks, e-wallet providers and other regulated financial institutions to remove online gambling links from their apps.
‘But I think it is primarily because of the Middle East crisis. Prior to this crisis, the online gaming segment had already overtaken land-based casinos, but we are not seeing the same after the Middle East crisis,’ Tengco said.
Tengco said lower-middle-income and low-income players have been hit hardest, as they prioritize food and basic necessities over betting or online gambling.
The contraction in the electronic gaming segment weighed on the broader industry. Industry-wide gross gaming revenue fell 15.87 percent in the first quarter to PHP87.6 billion ($1.42 billion), from PHP104.12 billion ($1.69 billion) a year earlier.
The report also cited Ateneo Center for Economic Research and Development Senior Research Fellow Ser Percival K. Peña-Reyes as saying that gaming revenues are likely to remain subdued in the near term, as higher fuel and transport costs squeeze household income and curb spending on nonessential activities such as gaming.
Headline inflation hit 7.2 percent in April, marking a second consecutive month above the central bank’s 2 percent to 4 percent target, as higher oil prices pushed up food and utility bills.
Even so, Tengco said an increase in tourist arrivals from certain markets could support integrated resorts and land-based casinos. Department of Tourism figures showed arrivals rose 8.97 percent to 2.295 million between January and April.
Chinese arrivals jumped 61.73 percent to 150,708 during the period, supported by a 14-day visa-free policy. Arrivals from South Korea, a key market for integrated resorts and casinos, fell 6.18 percent to 440,827.
Still, Peña-Reyes said the downturn may not be prolonged, noting that licensed integrated casinos remained resilient and generated PHP44.5 billion ($723 million) in first-quarter gross gaming revenue, accounting for 50.83 percent of the industry total.
