The Impact of E-Gaming on Pagcor’s Revenue and the Future of the Philippine Gaming Sector
The Philippine Amusement and Gaming Corp. (Pagcor) has experienced a remarkable shift in its gross gaming revenue (GGR) due to the influence of electronic gaming, surpassing its traditional sources. Despite the challenges posed by the pandemic, CEO Alejandro H. Tengco remains confident in the continuous growth of the e-gaming sector.
In 2023, Pagcor witnessed a significant 11.22 percent increase in GGR, reaching an impressive P285.27 billion, compared to P256.49 billion in 2019. While the country’s integrated resorts contributed the highest revenue of P207.48 billion to the gaming industry, the e-gaming sector closely followed with P58.16 billion. On the other hand, revenue from Pagcor-operated casinos under Casino Filipino accounted for only P19.62 billion.
The impact of electronic gaming on Pagcor’s revenue is undeniable. The pandemic caused a significant decline in GGR, reaching an all-time low of P98.79 billion in 2020. However, the following years showed a gradual recovery, with the GGR increasing to P113.09 billion in 2021 and nearly doubling to P214.33 billion in 2022.
One of the key factors contributing to this growth is the convenience offered by e-games. With the ability to gamble and bet from the comfort of their own homes, offices, and even restaurants, individuals no longer need to search for physical outlets and machines. The primary target market for e-games consists of younger individuals, as well as those who value privacy and individuals with health concerns. The “know your customer” (KYC) verification process ensures accurate age screening for these players.
While Tengco recognizes the continuous growth of the local gaming sector, he emphasizes that traditional land-based casinos will always have their place. There will always be individuals who seek the thrill and excitement of playing inside these physical establishments.
The prospects of the Philippine gaming market have garnered global attention, with Tengco’s experiences at conferences around the world reflecting this. There is a noticeable global trend shifting from traditional land-based casinos to online gaming, and the Philippines is at the forefront of this transformative wave.
Pagcor remains dedicated to its plan of introducing Casino Filipino online, with the launch scheduled for the second half of the year. While specific projections regarding the online casino’s contribution to the total GGR have not been provided, Tengco expresses confidence in its substantial potential. The global landscape is undergoing a significant shift, and the Philippine gaming market is poised to take advantage of this wave.
In conclusion, electronic gaming has proven to be a game-changer for Pagcor, surpassing traditional sources of revenue. With the continuous growth and convenience offered by e-games, the Philippine gaming sector is positioned for a prosperous future. The introduction of Casino Filipino online only adds to the optimism surrounding the industry’s upward trajectory.
FAQ:
Q: What is Gross Gaming Revenue (GGR)?
A: Gross Gaming Revenue (GGR) refers to the total revenue generated from operational casino games.
Q: What is e-gaming?
A: E-gaming refers to electronic games, including online games and games played on electronic devices.
Q: What are integrated resorts?
A: Integrated resorts are comprehensive entertainment complexes that combine casinos with various attractions and amenities.
Sources:
1. Pagcor Official Website
2. Investor Relations (Source link to be verified)
