Philippines makes a record amount of money from online games

Philippines makes a record amount of money from online games

Philippines makes a record amount of money from online games

 With the help of e-games, Philippine gaming is expected to bring in a record PHP350 billion (£4.67 billion/€5.645 billion/$6 billion) this year.

 The Philippine gaming industry wants to beat the record for gross gaming income (GGR) set last year. Online games are a big reason for this.

 By the end of 2024, the sector will have reached GGR of PHP350 billion, which is about £4.67 billion, €5.645 billion, or $6 billion.  That's a lot more than the government's original goal of PHP334 billion and a lot more than the PHP285 billion that was made in 2023.

 Possible short-term spike
 Morgan Stanley says that 70% of GGR for the third quarter came from online games.  The researchers used Q3 data from the Philippine Amusement and Gaming Corporation (Pagcor) to come to their conclusions.  On November 14, the state-run body said that GGR for the time period rose 37.52% from PHP68.79 billion in 2023 to PHP94.61 billion.

 Alejandro Tengco, chairman and CEO of Pagcor, said that "electronic gaming" was the main reason for the rise. "Electronic gaming recorded a phenomenal increase of 464.38% from last year," he said.  They made PHP35.71 billion, which is a lot more than the PHP6.32 billion they made in the third quarter of 2023.

 "This great performance is a strong sign that using modern technology and mobile devices for fun and games will continue to be very important in shaping the future of gaming," Tengco said.

 Morgan Stanley, on the other hand, said that the rise might not last long because Pagcor is collecting licence and other fees from new operators.  More than 1,000 igaming sites were approved by the government in 2023, and more applications are still being processed.

 "There was a big rise in gaming sites because of the policy changes made by the current management," Tengco admitted.  "We also agreed to lower the (licensing) fees, which helped the number of approved sites go up."

 Not any POGOs?  no trouble
 Since Philippine Offshore Gaming Operations (POGOs) were kicked out, it has been a rough year for Philippine gaming.  When they started up in 2016, POGOs served players in other countries, especially China, at the same time as they did people in the United States.  Several POGOs were found to be fronts for online scams this year. They were linked to crimes like kidnapping, trafficking, money laundering, and torture.

 President Ferdinand Marcos Jr. banned the POGO business in July and told them they had to leave the country by December 31.  Right now, Pagcor says that there are only a few businesses left. They will all be gone by the end of the year.

 In other news, Pagcor will soon move into a new 40,000sqm offices in Pasay City. The new building is close to Ninoy Aquino International Airport in Manila and the Entertainment City casino zone.  The government body has leased the building from San Miguel Infrastructure (SMC) for 25 years.

 Tengco said, "This project will be more than just a building."  "It shows that Pagcor is dedicated to giving its employees a world-class place to work; it shows who we are, our core values, and our goals."