The Philippine gambling industry is poised for significant growth, with revenue projections soaring for 2025. This surge is expected to be driven by electronic gaming and integrated resorts, according to recent statements from the country’s gaming regulator.
Key Takeaways:
- Philippine gambling revenue could increase by 17% in 2025
- Electronic gaming and integrated resorts are key growth drivers
- Offshore gambling operators to wind down operations by end of 2024
Record-Breaking Revenue Projections
The Philippine Amusement and Gaming Corp (Pagcor) Chairman Alejandro Tengco has unveiled ambitious forecasts for the country’s gambling sector. According to Tengco, gross gaming revenues could reach between 450 billion and 480 billion Philippine pesos ($7.8 billion to $8.3 billion) in 2025. This projection represents a potential 17% increase from the record-breaking figures of 2024.
Last year, the industry saw an impressive 25% growth, with revenues hitting 410.5 billion pesos. Gross gaming revenues, which reflect the total amount wagered minus player winnings, have become a crucial indicator of the sector’s health.
Impact on Government Finances
The anticipated boost in gaming revenues could have a positive ripple effect on the Philippine government’s public finances. Pagcor, as a state-run entity, is required to transfer the majority of its earnings to the national treasury. This influx of funds could provide additional resources for various government initiatives and programs.
Electronic Gaming: A New Frontier
Electronic gaming is emerging as a potential powerhouse in the Philippine gambling landscape. Tengco suggests that this segment could help offset losses from offshore gambling operators, which are set to cease operations by the end of 2024 following a directive from President Ferdinand Marcos Jr.
The online gambling industry, which took root in the Philippines in 2016, experienced rapid expansion by capitalizing on the country’s liberal gambling laws. These operators primarily targeted Chinese customers, exploiting the fact that gambling is illegal in China.
Currency Conversion
For reference, the current exchange rate stands at $1 = 57.8860 Philippine pesos.
As the Philippine gambling industry continues to evolve, stakeholders will be closely monitoring these developments and their potential impact on the broader economic landscape.
