The Philippine gaming industry experienced a remarkable surge in the second quarter of 2024, with a staggering 32.3% year-over-year (YoY) growth in gross gaming revenue (GGR).
The country’s regulator, Philippine Amusement and Gaming Corporation (PAGCOR), has attributed this growth to the eGames sector, which has seen a phenomenal 525% YoY increase in revenue, reaching PHP30.85 billion ($538.66 million).
Despite the licensed casinos remaining the strongest contributor to GGR, with revenues totaling PHP49.48 billion ($863.95 million), the sector has seen a slight decline compared to the previous quarter’s record high.
PAGCOR-operated casinos and bingo operations, however, have experienced declines in revenue, with a 14.8% YoY drop and a 10.41% sequential drop, respectively.
The eGames sector’s rapid growth is attributed to police reforms implemented by PAGCOR over the past year, which have contributed to an increased confidence in the sector.
PAGCOR Chairman Alejandro H. Tengco expressed optimism that the eGames sector will help cover any potential shortfall resulting from the President’s order to ban offshore gaming operations (POGOs) by the end of the year.
Meanwhile, PH Resorts Group Holdings, Inc. is still in negotiations with potential investors for its Emerald Bay project, despite restrictions being lifted due to the previous deal with Tiger Resort Leisure & Entertainment, Inc. (TRLEI) being terminated.
The company is currently reevaluating its timetables and specifications for the project, which is expected to benefit from a seven-year exclusivity period upon completion.
PH Resorts reported a net loss of PHP494.3 million ($8.67 million) for the first half of 2024, primarily due to ongoing pre-development expenses.
The company is also navigating negative operating cash flows and an accumulated deficit of PHP 7.32 billion ($128.66 million) as of June 30th, 2024.
However, PH Resorts remains optimistic about its future prospects and is committed to finding a suitable investor for the Emerald Bay project.
In conclusion, the Philippine gaming industry has experienced a remarkable surge in GGR, driven by the eGames sector’s phenomenal growth. While licensed casinos continue to be the strongest contributor to GGR, the sector’s growth is expected to be fueled by the eGames sector in the future.
As the industry continues to evolve, it remains to be seen how PAGCOR’s efforts to regulate the sector will impact its growth and profitability.
