PGasia | Philippine Gaming Sector Hits New Heights with Record GGR in Q2
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Surge in Gross Gaming Revenue
The Philippine gaming sector, encompassing both casino and non-casino operations, reported an impressive gross gaming revenue (GGR) of PHP89.23 billion (US$1.56 billion) for the second quarter ending June 30. This marks a significant 32.3 percent increase compared to the same period last year. Sequentially, the GGR saw a 9.2 percent rise, setting a new quarterly record for the industry, according to the Philippine Amusement and Gaming Corp (Pagcor).
E-Games Lead the Growth
A standout contributor to this remarkable growth was the electronically-delivered games segment, which continued to outperform other sectors. In the second quarter alone, this segment generated PHP30.85 billion in GGR. Alejandro Tengco, Pagcor’s chairman and chief executive, highlighted the sector’s exceptional performance, noting a staggering 525-percent increase from the previous year’s figures.
Tengco emphasized that the robust performance of the e-Games sector is crucial for offsetting potential revenue losses stemming from the Philippine President’s directive to ban offshore gaming operations by the end of the year. According to Tengco, this sector’s strength ensures the industry’s resilience despite regulatory changes.
Impact of Offshore Gaming Ban on the Industry
Pagcor has downplayed concerns about the financial impact of the upcoming ban on offshore online gaming operators, stating that the segment contributes less than 5 percent to the nation’s total GGR. This minimal reliance suggests that the broader gaming industry will remain stable, even with the cessation of offshore operations.
Performance of Licensed Casinos and Pagcor-Operated Venues
Licensed commercial-sector casinos continued to be the largest contributor to the overall GGR, bringing in PHP49.5 billion during the second quarter. However, this figure represents a 4.3 percent decline year-on-year and remained flat compared to the previous quarter.
Meanwhile, casinos operated directly by Pagcor, under its Casino Filipino brand, generated PHP4.20 billion in GGR for the April to June period. This marked a 14.8 percent drop from the previous year and a 10.4 percent decline quarter-on-quarter, reflecting challenges within Pagcor-operated venues.
Outlook for 2024
Looking ahead, Pagcor remains optimistic about the industry’s performance. The agency projects that the Philippine gaming industry will generate PHP336.38 billion in GGR for 2024, representing a 17.9 percent increase from 2023. The first-half results already account for 50.8 percent of this target, indicating strong momentum going into the latter half of the year.
In addition to the robust GGR, Pagcor reported a net income of PHP6.56 billion for the first half of 2024, a significant 121.5 percent increase compared to the same period last year. This surge in profitability underscores the resilience and continued growth of the Philippine gaming sector.
Conclusion: A Thriving Industry Despite Challenges
The Philippine gaming industry has demonstrated remarkable growth, driven by the strong performance of the e-Games segment and stable contributions from licensed casinos. Despite the looming offshore gaming ban, the sector is on track to meet its ambitious targets for the year, solidifying its position as a key player in the global gaming market. For more insights into the gaming industry and related strategies, visit Gold99, your trusted source for expert analysis and gaming tips.
