The Philippine gaming sector – including non-casino operations – produced gross gaming revenue (GGR) of PHP94.51 billion (US$1.60 billion) in the three months to September 30, a slight dip of 0.1 percent from the prior-year period.
The tally was down 14.6 percent sequentially, from the record-setting PHP110.63 billion achieved in the preceding quarter, according to data published on Tuesday by the country’s casino regulator, the Philippine Amusement and Gaming Corp (Pagcor).
The performance for the third quarter this year reflects an adjustment “to online reforms and tighter rules on digital payments,” stated the regulator.
In August, members of the Philippine Senate began discussing stricter regulation of the country’s online gambling sector, including bills proposing a ban.
In late October, Pagcor said it had witnessed a “sharp decline” in its income since August, which the regulator attributed to the delinking of online gambling platforms from electronic wallets (e-wallets) and a slight decline in the number of new players.
Nonetheless, the agency said in Tuesday’s announcement that the electronic gaming segment remained the industry’s “strongest performer” in terms of growth during the reporting period, generating GGR of PHP41.95 billion, up 17.4 percent from a year earlier.
Alejandro Tengco, chairman and chief executive of Pagcor, noted however that the growth in the electronic gaming segment was mainly due to a robust performance in July, as revenues in August and September had declined.
“The figures reflect an industry that is adjusting to necessary safeguards,” Mr Tengco was quoted as saying.
“The delinking of e-wallets resulted in a short-term decline in activity toward the latter part of the quarter,” he observed. “However, these measures are vital to protect players and ensure secure, transparent transactions.”
The Pagcor chairman also said that while legitimate operators were strictly complying with the new rules, some illegal online gaming websites continued to expand.
“These unauthorised platforms do not follow responsible gaming standards, do not pay taxes, and put players at risk of data theft and fraud,” Mr Tengco stated.
The country’s licensed commercial-sector casinos remained the biggest contributor to third-quarter GGR, at PHP45.56 billion. The figure was down 10.2 percent year-on-year, but up 3.4 percent sequentially.
Pagcor-operated casinos – under its network of Casino Filipino venues – brought in PHP3.22 billion in GGR in the July to September period, a 11.6-percent decline from a year earlier. The figure was up 3.5 percent quarter-on-quarter.
In terms of GGR share, licensed casinos brought in 48.2 percent of aggregate revenue in the third quarter this year, while the electronic segment contributed 44.4 percent.
Despite the downward trend from a year earlier and adjustments in the online digital payment segment, Mr Tengco expressed confidence that the industry would regain momentum as players adapt to new e-wallet protocols, while authorities strengthen enforcement measures against illegal gambling portals.
