Philippine gaming sector grows by a third, driven by e-gaming
Date: 2024-08-14 Author: Alex Crawford Categories: GAMING
The Philippine gaming industry posted impressive revenue growth in Q2 2024. According to data released by government agency Philippine Amusement and Gaming Corp (Pagcor), gross gaming revenue (GGR) increased by 32.32% to reach P89.23 billion (£1.22 billion/€1.428 billion/US$1.563 billion) during the period. This also represents a 9.21% increase compared to the previous quarter.
While land-based casinos brought in P49.48 billion, down from P51.7 billion last year, casinos owned and operated by Pagcor under the Casino Filipino brand added P4.2 billion, down 14.7% from the same period in 2023. Bingo also brought in P4.69 billion, down from P5.85 billion last year.
E-Gaming: 500% Growth
The most notable gainer, however, was the e-gaming sector, which grew 525% year-on-year to nearly P31 billion.
Pagcor CEO Alejandro Tengco noted that the sector “continues to exceed its targets.” He also added that e-gaming could offset losses due to the ban on offshore gaming operators.
In July, Philippine President Ferdinand Marcos Jr. banned offshore gaming operators (POGOs), ordering them to cease operations immediately and completely dismantle them by the end of 2024.
The Impact of the POGO Ban
POGOs, which first emerged in 2016, have been repeatedly linked to fraud, human trafficking, money laundering, and murder. The ban would cost about P20 billion in annual revenue, but critics say the cost of monitoring the criminalized industry was comparable to its revenue.
It is reported that the closure of POGOs could put up to 30,000 Filipinos out of work and significantly impact the rental market.
Blood and Money: E-Sabong as a Source of Income?
Some lawmakers have sparked outrage by proposing to legalize e-sabong (online cockfighting) as a way to generate additional income.
Deputy Speaker and Quezon Provincial Representative David Suarez said cockfighting, including online versions, could be a significant source of revenue. “How do we properly regulate this so that the government can make money from it?” he asked.
At the Pagcor budget meeting, Representative Marissa Magsino also supported the proposal, noting that e-sabong “is happening everywhere.” “It’s better to legalize it than to keep it illegal and not make any profit from it,” she added.
The Philippine Inquirer called the idea “outrageous,” recalling the disappearance of more than 30 cockfight organizers in 2021 after clashes with industry insiders. The blood sport was banned in 2022 by former President Rodrigo Duterte and the missing have never been found.
The editors of the publication stressed that the return of legal e-sabong is a "horrific reminder of the short memory of our politicians." In their opinion, it would simply replace one criminalized platform with another "inextricably linked to human trafficking, torture and fraud."
