Online Gaming Growth Sets the Future Direction for the Industry
The chairman and chief executive of the Philippine Amusement and Gaming Corporation (Pagcor), Alejandro Tengco, emphasized that online gaming will define the future of the gambling industry. Speaking at an event in Manila, Tengco highlighted technological advancements and their impact on gaming revenues, as well as policy adjustments that aim to further stimulate industry growth.
Online Gaming as the Future
Alejandro Tengco underlined the growing dominance of online gaming during his speech at the “Champion’s Night” event organized by FBM, a major supplier of electronic gaming machines. “The future of gaming will be online,” Tengco stated, pointing to the role of modern technology and mobile gadgets in transforming the gaming sector.
This trend is reflected in the rapid growth of electronic gaming and bingo operations, which collectively generated gross gaming revenue (GGR) of PHP40 billion (US$679.2 million) in the third quarter of 2024, marking a 236.9% year-on-year increase.
Electronic gaming stood out as the industry’s top performer, generating PHP35.71 billion in GGR—a staggering 464.4% growth compared to the previous year. Tengco noted that this performance highlights the critical role of technological innovation in driving the sector’s future.
FBM’s Impact on the Industry
FBM, one of the biggest gaming equipment suppliers in the Philippines, was feted for its contributions to the local market. Tengco commended the company for growing from a small business 22 years ago to a leader with 32,000 machines across the country. FBM recently launched its online gaming platform FBM E-Motion and announced a US$10-million investment in a new software development center in Manila.
Pagcor recently reduced the GGR remittance rates for online and land-based betting platforms effective January 1, 2025. The rates will be 30% for land-based and 25% for integrated resorts with online gaming.
To the industry, Alejandro Tengco said to reinvest the savings to marketing to get more customers and grow revenue. “I’m not asking you for anything, except that we hope you will use a big chunk of that additional discount for your marketing initiatives, so that you will be able to attract more customers, and drive GGR up.”
