Philippines gaming industry posts 37.52% GGR surge in Q3 driven by e-gaming boom

Sankunni K November 17, 2024

SiGMA news

The Philippine gaming industry saw a remarkable surge in Gross Gaming Revenue (GGR) in the third quarter of 2024, growing by 37.52 percent year-on-year to reach Php94.61 billion. This growth, reported by the Philippine Amusement and Gaming Corporation (PAGCOR), reflects a significant boost from the electronic gaming (e-gaming) sector, which saw revenue increases of over five times compared to the previous year.

Electronic gaming drives revenue growth

According to , the third-quarter GGR increase was primarily propelled by the electronic gaming sector, which generated Php35.71 billion in revenue, a massive 464.38 percent rise from last year’s Php6.32 billion. PAGCOR Chairman and CEO Alejandro H. Tengco credited this growth to technological advancements and the widespread adoption of mobile gaming platforms.

“This impressive performance is a strong indication that the use of modern technology and mobile gadgets in gaming and amusement will continue to play a pivotal role in shaping the future of gaming,” Tengco said, highlighting the importance of adapting to changing consumer habits that increasingly favour digital and mobile platforms.

Year-end revenue projections and e-gaming’s impact

Looking ahead, Tengco expressed optimism for the electronic gaming sector’s continued expansion. He projected that by the end of the year, the sector could contribute up to Php78 billion in license fees, bringing PAGCOR closer to its Php100 billion revenue target for 2024. The growth in e-gaming aligns with a global trend where mobile and online gaming have become significant revenue sources, particularly as younger, tech-savvy users are more inclined towards digital platforms.

Casino performance: Slight decline amid sectoral growth

Despite the robust gains in electronic gaming, the Philippines’ licensed casinos, which remain the primary source of GGR, reported a slight dip. The third-quarter GGR from casinos reached Php50.72 billion, down 2.27 percent from Php51.90 billion in the same period last year. Casino Filipino venues, which are directly operated by PAGCOR, generated Php3.64 billion, reflecting a 26.32 percent decrease from the 2023 figure of Php4.94 billion.

This decrease in casino revenue may be partly due to the shift in consumer interest towards more accessible and technology-driven gaming options. The shift mirrors patterns seen in other gaming hubs, like Macau, where physical casinos are facing challenges in maintaining their dominance as mobile gaming rises.

Bingo and other segments see revenue declines

Traditional gaming segments such as bingo also recorded a downturn. Bingo operations contributed Php4.52 billion in the third quarter, marking a 19.43 percent decrease from Php5.61 billion the previous year. These declines suggest that while traditional forms of gaming remain popular, their growth potential may be limited compared to the rapidly evolving e-gaming sector.

Future of gaming in the Philippines

As PAGCOR sets its sights on reaching its revenue targets for 2024, the organisation acknowledges the pivotal role technology will play in shaping the Philippine gaming landscape. “We anticipate that the E-Games sector will continue to flourish as technology increasingly becomes an integral part of people’s lifestyles,” said Tengco.

This growth trajectory highlights the importance of adapting to modern gaming trends while ensuring that regulatory frameworks evolve alongside the industry’s expansion. PAGCOR’s efforts echo similar trends in neighbouring regions where mobile and e-gaming are increasingly recognised as key contributors to economic growth.