Strong Start for the Philippine Gaming Industry in 2024
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The Philippine gaming industry surges in Q1 2024, with record-breaking revenue and a significant shift towards the booming Electronic Games sector. This report analyzes the growth, regulatory factors, and challenges faced by traditional and online segments
The Philippine Amusement and Gaming Corporation (PAGCOR) reported a positive first quarter of 2024 for the Philippine gaming industry. Gross Gaming Revenues (GGR) reached Php 81.70 billion, representing an impressive 18.54% increase compared to the same period in 2023 (Php 68.92 billion). This marks a new record high for the first quarter and sustains the upward trend observed since the industry's post-pandemic recovery began in late 2022.
WHERE WERE THE HIGHS OF GAMING
The Electronic Games (E-Games) sector emerged as the strongest performer, achieving remarkable growth. E-Games revenue surged to Php 22.5 billion, a staggering increase of over 600% compared to the Php 3.5 billion generated in the first quarter of 2023.
PAGCOR Chairman and CEO Alejandro H. Tengco attributed this success to the growing influence of gaming technology and mobile devices on both daily life and entertainment choices. He emphasized the transformative impact of technology on gaming and entertainment, suggesting a clear future for the E-Games sector.
Furthermore, Mr. Tengco highlighted the positive contribution of PAGCOR's improved regulatory policies and reduced fees in fostering E-Games growth. These changes are expected to attract further business and investment opportunities in the Philippine gaming industry, both domestically and internationally.
… AND ALSO HIS FALLS
Traditional sectors, while still contributing significantly to overall GGR, experienced a slight decline year-on-year. Licensed casinos generated Php 49.7 billion, down from Php 54.15 billion in Q1 2023. Similarly, PAGCOR-operated Casino Filipino establishments saw revenues decrease to Php 4.69 billion compared to Php 5.13 billion last year.
This trend reflects a potential shift in player preference towards online platforms. Bingo operations also witnessed a decrease, contributing Php 4.81 billion compared to Php 6.13 billion in the first quarter of 2023.
Despite the slight decline in traditional sectors, the overall GGR exceeded 24% of the projected full-year target of Php 336 billion.
This positive start is particularly notable considering the traditional fourth-quarter spike in gaming revenue. The first quarter of 2024 even surpassed the previous record of Php80.12 billion set in Q4 2023, solidifying the industry's strong momentum.
We could also remind you that simultaneously Philippine authorities continue their fight against illegal gaming and online scams with recent raids in Laguna and Parañaque City. As reported by PAGCOR (Philippine Amusement and Gaming Corporation), these operations resulted in the arrest of 36 individuals – a strong reminder to stay vigilant.
