Stunning revenue shift: E-games trump brick-and-mortar casinos
INQUIRER FILE PHOTO
MANILA, Philippines — For the first time ever, the electronic gaming sector has surpassed brick-and-mortar casinos in terms of revenues, reshaping the Philippine gambling industry at a time when the country is positioning itself as a major gaming hub for high rollers in Asia and beyond.
Latest data from the Philippine Amusement and Gaming Corp. (Pagcor), the gambling regulator, showed that the gross gaming revenue (GGR) of the e-games and e-bingo sector had amounted to P51.39 billion in the first quarter.
This accounted for 49.36 percent of the local gaming industry’s total GGR of P104.12 billion in the three months through March.
GGR is a key metric that shows the total amount of bets minus payouts from winnings.
Pagcor said the local gambling industry’s GGR posted an annualized growth rate of 27.44 percent in the first quarter, adding that it was the first time in history that e-games became the industry’s top revenue driver.
Digital shift
Figures showed licensed casinos, which had historically accounted for the bulk of the total GGR, contributed P49.28 billion or 47.32 percent to the overall haul last quarter.
Pagcor chair and CEO Alejandro Tengco said the stunning shift was driven by changing preferences of punters.
“This represents not just revenue growth but how consumer behavior continues to shift towards digital, on-demand gaming experiences, accelerated by greater access to mobile technology,” Tengco said.
“While there was a minimal dip in revenues from licensed casinos compared to last year’s figures due to growing digital competition, this segment shows sustained strength and relevance,” he added.
As it is, the growth of the e-games and online gambling sector has been so strong that it caught the attention of some lawmakers.
In March, Senate President Francis Escudero called for a review of online gambling operations that cater to players onshore, citing its potential “ill effects” on the lives of Filipinos.
READ: Escudero eyes local online gambling ban
Meanwhile, the Anti-Money Laundering Council has conducted a risk assessment of various forms of online gambling.
As the e-games sector receives scrutiny, Tengco said the performance of brick-and-mortar casinos “remains critical to industry stability.”
The Pagcor chief expects gambling-related revenues to grow by 15 percent in 2025 to between P450 billion and P480 billion, from the record GGR of P410.5 billion in 2024.
