CasinoPlus, an online gaming provider regulated by the Philippine Amusement and Gaming Corp (Pagcor), says it has clinched the agreement of a number of the country’s integrated resort (IR) licensees to expand the online gambling offering within the Philippines.
In total, seven casino resorts, encompassing some in Manila, have signed deals to be part of the online gambling platform created by CasinoPlus, said the company’s chief executive, Evan Spytma, in comments to GGRAsia.
“What we’re looking to do is basically shorten the amount of time it takes for land-based casinos to go online,” stated Mr Spytma.
“In order for that to occur, you need a proper back end as well the knowledge to do so, which traditionally is not the bread and butter of a land-based casino,” he added.
According to data from Pagcor, aside from the Casino Filipino network directly operated by the regulator, there are currently 15 licensed casinos in the country.
The introduction of Philippine Inland Gaming Operator (PIGO) licences has reshaped the gambling scene in the Philippines, as integrated casino operators have ventured into the online space, catering to local patrons.
PIGO games must be connected to physical gaming machines or tables, available at a physical casino, distinguishing them from traditional online gambling.
CasinoPlus holds a gaming licence for its under-renovation IR, the Hotel Stotsenberg and Casino in Clark, located two hours north of the capital Manila.
Casino licensees in the Philippines can get 25-percent above their original quota on both gaming tables and slot machines to be allocated to online operations, according to Mr Spytma.
“What we’re doing is we’re offering not only the technology, but the player base through CasinoPlus,” stated the CEO.
“In agreement with the land-based casinos, we come on board to provide all of the equipment, the gaming paraphernalia and the day-to-day operations,” he added.
According to the executive, casino licensees “don’t have any additional costs,” but the agreement allows CasinoPlus to make use of a casino operator’s “online quota and take these traditional land-based products online”.
“We introduce them to our players on CasinoPlus, and we share revenue with the casino operator,” explained Mr Spytma. He did not give a breakdown of the revenue split.
Growing rapidly
The CEO said this model could provide a casino licensee in the Philippines with “an online product and knowledge at a pace that they just couldn’t do internally”.
“There are some that are trying to do it, but the difficulty they’ll have once they build out that backbone is that they will end up having to try to find players online,” he noted.
Mr Spytma added: “That’s traditionally something that they just don’t have the knowledge to do, or they have a very small, internal base of players that won’t sustain operations for something online.
Such approach, noted the CEO, could represent a “brand-new revenue stream” for casino licensees. “It also offers brand recognition because anytime that an online player of CasinoPlus goes to a live version of slots or table games, the brand and logo of the integrated resort will be shown,” he added.
Mr Spytma said he expects the network to “grow into a platform for all online players, where they eventually will be going to individual casinos”.
“Casinos can actually do promotions to CasinoPlus players, even land-based promotions, which would eventually bring in those players to their property,” he stated.
The rise of gross gaming revenues (GGR) in the Philippines has recently been fuelled by the increasing prevalence of online casinos and platforms in the country.
The rapid advancement of technology – alongside the widespread use of smartphones and convenience of access – has greatly impacted the online casino industry in the Philippines, leading to substantial growth in this segment, suggested earlier this year the president and chairman of Pagcor, Alejandro Tengco.
Mr Tengco said in recent comments that the development of “modern technology and mobile gadgets” ensures that the “future of gaming will be online” in terms of delivery format.
According to Pagcor, the electronic gaming segment was the industry’s best performer in terms of growth in the three months September 30, generating GGR of PHP35.71 billion (US$605.1 million). That was a 464.4-percent increase from a year earlier.
The Pagcor boss said a fortnight ago that GGR in the country would in likelihood exceed US$6 billion for 2024, which would be a new record, based on the agency’s previous disclosures.
