Exciting revelations about the future of gambling in the Philippines have emerged from the prestigious Global Gaming Expo (G2E) Asia summit held in Macau. The Philippine Amusement and Gaming Corp. (PAGCOR), the country’s esteemed gaming regulator and casino operator, is poised to revolutionize the online gambling landscape with its groundbreaking plans.
In his keynote speech at the G2E conference, PAGCOR Chairman and CEO Alejandro Tengco outlined his vision for Asian gaming. If Tengco’s ambitious goals come to fruition, the gaming ecosystem in the Philippines will experience a remarkable transformation.
One of the most notable aspects of Tengco’s vision is his belief in the potential for online poker and slots to thrive in the country. To make this a reality, he has issued a stern warning to the Philippine Offshore Gaming Operator (POGO) segment.
Elevating online gaming
Tengco emphasizes the need for PAGCOR to assume greater regulatory responsibilities. This is not merely an attempt to curb the illegal activities associated with the industry, but also a crucial step toward establishing the Philippines as a premier gaming destination within the Association of Southeast Asian Nations (ASEAN) union.
Expanding on the importance of intensified regulatory oversight, Tengco envisions implementing comprehensive guidelines for online poker and slots. He highlights that PAGCOR has already updated various policies to enhance the online gaming sector, and now he sets his sights on these two specific areas.
Tengco stated, “For this year and beyond, PAGCOR intends to bring regulatory frameworks for online poker operations, enhance slot machine operations, upgrade gaming equipment, and create and upgrade existing regulatory frameworks.“
In order to achieve these goals, Tengco acknowledges the urgency of addressing the negative perception surrounding the POGO segment. Recent reports have shed light on operators involved in human trafficking and fraud schemes, prompting Philippine authorities to rescue numerous victims in recent months.
While some advocate for the complete termination of the online gambling segment, Tengco aims to avoid such a drastic measure. He points out that the gross gaming revenue (GGR) generated by the sector reached PHP11 billion (US$202 million) in 2022, with expectations to soar to PHP 24 billion (US$441 million) this year.
Instead, Tengco has put all licensed POGOs on probation, effective immediately. This means that every POGO operator must apply for a new license under the forthcoming revised regulatory framework. Failure to comply or secure a new license will result in being deemed an illegal operator.
PAGCOR, about to leave the casino market?
Under mounting pressure from lawmakers, who criticize its efficacy as a regulator and attribute blame for recent POGO scandals, PAGCOR faces calls to divest itself of its gaming operations and shift its focus solely to regulatory oversight. Previously, PAGCOR resisted such a proposal, but Tengco now appears ready to embrace change.
During the G2E conference, Tengco indicated his willingness to support the sale of PAGCOR’s casino operations, which would enable the organization to concentrate its efforts on enhancing regulations and gaming oversight. This strategic move could bolster the Philippines’ reputation and attract investment capital as its regulatory framework strengthens.
Naturally, executing a successful sale will require substantial resources. Tengco previously expressed that PAGCOR would seek a minimum of PHP 80 billion (US$1.47 billion) for its publicly owned casinos. Following a remarkable 80% year-on-year increase in GGR to PHP 59.26 billion (US$1.08 billion) in the first quarter of 2023, PAGCOR might even set higher expectations.
With PAGCOR’s grand plans and transformative initiatives taking center stage, the future of online gambling in the Philippines appears poised for remarkable progress and newfound success. As PAGCOR leads the charge, it will undoubtedly shape the landscape of the Philippine gaming industry for years to come.
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