Total gross gaming revenue (GGR) of licensed casinos in the Philippines fell 4.3% year-on-year to 49.48 billion Philippine pesos (US$864 million). This slight decline was followed by gross revenue of 49.68 billion Philippine pesos (US$867 million) in the first quarter. The gaming industry in the Philippines as a whole showed steady growth due to the growing electronic gaming sector. despite the downward trend in revenues of traditional casinos.
Electronic Games: An Outstanding Performer:
The electronic games sector, announced PAGCOR Chairman and CEO Alejandro H. Tengco, has seen significant growth, with revenues reaching 30.85 billion Philippine pesos (US$539 million). This is an impressive 525% increase from the previous year’s 4.93 billion Philippine pesos (US$86.1 million).
Tengco said as reported by Inside Asian Gaming — «This sector continues to exceed targets and should help cover any shortfall resulting from the Presidential decree banning offshore gaming operations or POGO by the end of the year,» emphasizing the strategic importance of E- Gaming in the local gaming market.
The PAGCOR-managed Casino Filipino brand generated revenue of 4.20 billion Philippine pesos (US$73.3 million) in the second quarter, down 14.8 percent from 2023. Similarly, revenue from bingo operations fell to 4.69 billion Philippine pesos (US$81.9 million), also down from the previous year’s second quarter revenue of 5.85 billion Philippine pesos (US$102 million).
International Outlook: Universal Entertainment Corp:
Universal Entertainment Corp, parent company of Okada Manila noted in a statement — «The number of VIP guests at Okada Manila continued to decline as the slowdown in the entertainment industry negatively impacted the overall market conditions of the casino business in the Philippines,» highlighting the challenges in the casino sector in the Philippines due to the slowdown in the entertainment industry, which affected its overall performance. Despite the downward trend in the mass market and slot machine sectors compared to the previous year, the company saw steady sales growth compared to the pre-pandemic peak in 2019.
Universal’s Entertainment Equipment division, which includes pachinko and pachislot machines, also experienced a significant decline. The pachislot sector remained resilient, largely due to innovations in smart machines that meet operator expectations. However, sales in the pachinko sector, despite the introduction of machines with new features such as the lucky trigger function, have been slow in comparison.
Overall, the second quarter marked a challenging picture of the casino industry in the Philippines. While traditional gaming venues face challenges, the explosive growth of electronic gaming and strategic changes in entertainment equipment suggest a transformational phase for the industry. This emphasizes adaptability and potential opportunities for recovery and growth.
Stakeholders remain cautiously optimistic, focusing on adapting to market demands and exploring new gaming horizons. This adaptability is not only aimed at mitigating current market challenges, but also sets the stage for sustained growth in the post-pandemic era, ensuring the industry’s resilience and continued contribution to the national economy.
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