PAGCOR Chairman Encourages New Investors Amid Strong 2023 Results

“Now is the time to come to the Philippines” declared Alejandro Tengco, the chairman of PAGCOR, during his address at ICE London, coinciding with robust achievements in 2023.

In a recent interview with Asia Gaming Brief at the International Casino Exhibition in London, Alejandro H. Tengco, Chairman and CEO of PAGCOR, conveyed a clear message: the Philippines is open for business and poised to act as a reliable hub for operators worldwide. His statement coincided with the Philippines’ gambling regulator unveiling impressive results for the preceding year, showcasing a remarkable surge of over 90 percent in online gaming activities in 2023 compared to the prior year.

The eGaming sector, encompassing e-games, e-bingo, specialty games, and sports betting, amassed revenues totaling PHP 58.16 billion, marking a substantial 92.32% surge from previous earnings. Furthermore, over 1,000 E-Gaming sites received licensing in the Philippines in 2023. The regulator anticipates sustaining this momentum, forecasting revenues of PHP 61.75 billion for the E-Games sector in 2024.

During the Asia Round Table discussions at ICE London, Chairman Tengco underscored that the Philippines presently stands as the sole Southeast Asian country regulating online gambling, emphasizing significant strides in enhancing the sector’s reputation. Addressing the past concerns regarding POGOs and their potential involvement in illicit activities, PAGCOR has intensified efforts to address these issues.

Since 2023, over 250 previous Master and Sub-Licensees under the previous POGO scheme have been required to reapply, resulting in the current number of licensees standing at 75. Despite the reduction in numbers, Tengco noted an increase in revenues, underscoring the benefits of balanced regulation. To foster this, PAGCOR is reducing fees to incentivize operators to seek official government approval for their operations, thus diminishing the allure of illegal and unlicensed activities.

PAGCOR’s approach not only yields dividends within the Philippines but also garners attention from neighboring nations. Chairman Tengco revealed that a delegation from Cambodia had approached him during the event to explore effective methods for regulating both land-based and online gambling. When asked if the Philippines is emerging as a leader in cleaning up and regulating gambling, Tengco concurred, asserting the country’s prominence in Asia in terms of robust regulation of online and overseas gaming licenses.

Regarding tackling unlicensed online operators, Tengco indicated an exploration of a novel strategy targeting the game suppliers utilized by such operators, rather than solely blocking websites. He stated, “I have already instructed the head of the electronic gaming licensing department to address this matter. I anticipate their presentation on how to regulate all game providers or service providers supplying games to our licensees.”

I think it will be a different model. We will continue to encourage investment in integrated resorts that offer a lot of things, not just gaming. If Macau is gearing towards non-gaming as they were saying, I think ours will be a combination

Alejandro Tengco, PAGCOR Chairman

Tengco encouraged investors to consider the Philippines as a prime location for both online and land-based ventures. When queried about the possibility of mirroring Macau’s emphasis on non-gaming activities in the future, he outlined a distinct approach, highlighting a focus on integrated resorts offering diverse experiences, not solely gaming.

PAGCOR has been very good recently in keeping quality licensed operators. This in turn gives confidence to the players to trust licensed online gaming sites and makes deposit and withdrawals easier as well. A well regulated gaming industry is important in keeping illegal operators from succeeding and instill market confidence among the regulator, operators, and players.

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