Philippine Gaming Sector Sees Significant Growth in H1 2024

Significant Rise in Net Income

Pagcor reported a net income of PHP6.56 billion for the first six months of 2024, marking an impressive 121.48 percent increase from the previous year.

This surge in profitability is attributed to the effective reforms and enhanced regulations implemented by the agency. Alejandro Tengco, Pagcor’s chairman and chief executive, emphasized that these results highlight the positive impact of the agency’s strategic initiatives.

Increased Contributions to National Treasury

The substantial net income growth has enabled Pagcor to contribute significantly to national development. The agency remitted PHP31.82 billion to the Treasury in the first half of 2024, a notable increase from PHP22.62 billion in the same period last year.

Diverse Revenue Streams

Pagcor’s total gross revenues for the first half of 2024 amounted to PHP51.76 billion, up 42.92 percent year-on-year. Gaming operations were the primary revenue driver, contributing PHP45.39 billion.

Notably, electronically-delivered gaming sectors, including e-Bingo, e-Games, and bingo grantees, generated PHP20.66 billion, accounting for 45.53 percent of the total gaming revenue.

Performance of Commercial and Publicly-Owned Casinos

Licensed commercial-sector casinos contributed PHP16.06 billion, approximately 35.44 percent of Pagcor’s first-half revenues.

Meanwhile, Pagcor’s Casino Filipino chain of gaming venues brought in PHP6.93 billion, representing 15.27 percent of the total revenue. Despite a slight decrease in GGR from Pagcor-operated casinos, the overall performance of the sector remains strong.

Projected Annual Revenue

Pagcor is optimistic about achieving or surpassing the PHP100 billion threshold in annual gross revenue for 2024.

Alejandro Tengco expressed confidence in reaching this milestone, particularly with the phenomenal growth in the e-Games sector and increasing interest from players and investors in the Philippine market. He highlighted the sector’s domestic-driven performance as a key factor in this success.

Future Outlook

In terms of GGR, licensed casinos remain the largest contributors, generating PHP99.16 billion in the first half of 2024.

The e-Games sector, however, has shown the highest growth, recording a 208.4 percent increase to PHP63.01 billion. This unprecedented performance is expected to continue driving the sector forward.

Pagcor projects the nation’s gaming industry will generate PHP336.38 billion in GGR for the entire year, a 17.9 percent increase from 2023.

The first-half results already represent 57.89 percent of this target, indicating a strong likelihood of meeting or exceeding annual expectations.