GGRAsia – Future of gaming is the online format: Pagcor chairman

Future of gaming is the online format: Pagcor chairman

Nov 20, 2024 Newsdesk Latest News, Philippines, Top of the deck

Alejandro Tengco, chairman and chief executive of the Philippine Amusement and Gaming Corp (Pagcor), the country’s casino regulator, says the development of “modern technology and mobile gadgets” ensures that the “future of gaming will be online” in terms of delivery format.

Mr Tengco (pictured) was speaking on Tuesday in the Philippine capital, Manila, at the latest “Champion’s Night” event organised by FBM, a supplier of electronic gaming machines including casino and bingo slots.

“Truly, the future of gaming will be online,” stated the top regulator, adding that combined gross gaming revenue (GGR) generated by the electronic gaming segment and bingo operations “surpassed PHP40 billion [US$679.2 million]” in the third quarter of 2024.

That was up 236.9 percent from the prior-year period, showed official data.

According to the agency, 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. That was a 464.4-percent increase from a year earlier.

The industry “has grown in terms of GGR and this impressive performance shows that modern technology and mobile gadgets have already become the future of gaming,” observed Mr Tengco.

The Pagcor chairman also said that FBM’s work in the Philippines showed a “transformation from a small business 22 years ago, to where the company stands today,” as one of the biggest suppliers in the market.

Earlier this year, FBM launched FBM E-Motion, an online gaming platform in the Philippines. In September, the company announced a US$10-million investment to build a new “software house” in Manila.

“FBM is now one of the biggest [companies] in the local gaming industry, with around 32,000 machines deployed all over the Philippines,” noted Mr Tengco, adding that the company was making “positive contributions” and helping the industry grow further.

On Tuesday, the head of Pagcor also mentioned the reduction – announced in September – of the GGR remittance rate for online and on-site betting platforms, starting from January next year.

Fees will be cut to 30 percent for land-based licences and to 25 percent for integrated resorts which are also involved in online gaming.

Addressing the audience at Tuesday’s gathering, Mr Tengco stated: “As you very well know, by January 1, 2025, your rates will come down to 30 percent.”

He added: “I’m not asking you for anything, except that we hope you will use a big chunk of that additional discount for your marketing initiatives, so that you will be able to attract more customers, and drive GGR up.”