16-8-2023 (MANILA) The Chairman of the Philippine Amusement and Gaming Corp (Pagcor) announced on Wednesday that the country’s gambling industry is expected to double its gross gaming revenue by 2028. The surge is anticipated as the Philippines continues to attract more tourists, particularly affluent Chinese gamblers.
To fortify its position in the freewheeling gaming sector and stay ahead of competition from countries like Japan and Thailand, the Philippines has plans for the development of approximately six new casino facilities worth an estimated $3 billion.
Pagcor Chairman Alejandro Tengco informed Reuters that the gaming sector is projected to achieve at least 10 percent annual growth in gross gaming revenue (GGR). This year, GGR is expected to reach a new record high and is forecasted to range between 450 billion to 500 billion pesos ($7.9 to $8.8 billion) in the next five years.
In 2019, the total GGR, a crucial industry metric representing the amount wagered by players minus their winnings, reached a record-breaking 256 billion. However, the industry suffered a severe setback due to the COVID-19 pandemic. Nevertheless, GGR has shown signs of recovery in 2021, reaching 214 billion.
Tengco stated, “Currently, the strong performance is supported by a stable of local players. There is still an opportunity for the foreign market to increase further due to improving foreign travel guidelines.”
However, Tengco cautioned that long-term projections could face challenges such as armed conflicts between countries, the proliferation of illegal gambling, and economic downturns.
The Philippines’ gambling scene, including a smaller version of the Las Vegas gaming strip in the capital, has been successful in attracting high rollers from countries like China, Japan, and South Korea. It has enticed both foreign and domestic companies to establish billion-dollar integrated casino-resorts.
In addition to the four existing large-scale casinos in the capital, plans are underway to construct six more gaming facilities across the country, according to Tengco.
These include a casino and golf course project worth up to $2 billion in Pampanga province, a $300 million venture by Bloomberry Resorts in Cavite province, and a $300 million project by Global-Estate Resorts on the holiday island of Boracay, as indicated by Pagcor’s data.
While the planned casinos in Thailand and Japan pose a potential threat, the Philippines aims to strengthen its position as a preferred destination by privatizing state-owned casinos, launching new gaming projects, and implementing policy reforms, Tengco added.
