Since the Philippine government issued a comprehensive ban on Philippine Offshore Gaming Operators (POGO), the related industries have undergone drastic changes. The once-thriving POGO industry, which was one of the main sources of gambling revenue in the Philippines, has become a national security and social order hazard due to its connections with human trafficking, kidnapping, and money laundering.
According to official data, as of November 29, 53,700 offshore gaming employment permits have been canceled; 18 internet gambling license holders have voluntarily canceled their licenses; 27 IGLs are gradually shutting down their operations.
PAGCOR also stated that this weekend (December 15), all licenses related to the Philippine offshore gaming business (POGO) will be revoked.
Despite this, some illegal POGO operators are still operating in secret, and President Marcos has repeatedly instructed law enforcement agencies and local governments to jointly investigate illegal activities. He also emphasized that local chief executives should proactively gather intelligence to ensure the complete eradication of these "cancers" within the community.
It can be said that the implementation of the POGO ban has brought significant economic impact. A large number of practitioners have become unemployed, the related industrial chain has been broken, and government tax revenue has decreased. The real estate and service industries, which had thrived due to POGO, have also declined, especially with the significant loss of Chinese clients affecting multiple industries.
The most obvious signs are the vacancies in rental housing and many businesses closing down.
Does this mean that the Philippines really left no way out for itself? Not at all!
The Philippine government still has two aces up its sleeve: land-based casinos and online electronic games (e-Games)
Ace number one: Land-based casinos
Although POGO is completely banned, the Philippines has not completely distanced itself from the gambling industry; the development of land-based casinos has become the new ace. Especially with Manila Bay Entertainment City at its core, the integrated resort industry remains a pillar of gambling revenue in the Philippines.
Top integrated resorts including Resorts World Manila, City of Dreams Manila, Okada Manila, and Solaire Resort and Casino, despite being affected by the loss of Chinese VIP customers and lower-than-expected tourists, still hold a significant position in the global gambling market. Although revenue in Manila Entertainment City fell by 13% in the first six months before 2024, there has been a sign of recovery in the third quarter, with a 4% increase quarter-on-quarter.
Moreover, the fifth entertainment city integrated resort, LET X, is expected to open in 2025, further enhancing the region's gambling appeal.
Not only that, but the gambling industry in other regions of the Philippines is also regaining vitality. For example, the construction of the integrated resort Emerald Bay in Cebu has resumed. This project includes a five-star hotel, a convention center, a large casino, and other facilities, expected to bring new growth points to the Philippines.
PS: Solaire Resort South is also opening next month!
According to data from the Philippine Amusement and Gaming Corporation (PAGCOR), the total gambling revenue in the Philippines in 2023 reached 285.27 billion pesos, an increase of 33.1% year-on-year. Among them, land-based casinos contributed the majority, showing their strong recovery capability. These casinos attracted high-end customers from Japan, Korea, and other countries, injecting new vitality into the Philippine gambling industry.
Additionally, PAGCOR revealed that the Philippines plans to privatize all state-owned casinos by early 2026, with several new casino projects planned in tourist hotspots such as Manila, Cebu, and Boracay.
Ace number two: Online electronic games (e-Games)
Even before POGO was banned, the Philippines' online electronic games (e-Games) had begun to rise, and it has now become a "dark horse" in the gambling industry. In 2023, the revenue from the electronic gambling industry already grew by 92.32%, reaching an astonishing 58.16 billion pesos, and it is expected to reach 61.75 billion pesos in 2024.
In 2023, the Philippine gambling industry also achieved another milestone: having over 1,000 licensed electronic gaming websites.
So, after seeing the potential of electronic games, PAGCOR began implementing a series of measures in February this year, such as further reducing licensing rates and optimizing the policy environment to encourage the development of online gambling forms such as eBingo and eCasino.
The development potential of e-Games is promising! In the first quarter of 2024, the total revenue (GGR) of the Philippine gambling industry reached 81.7 billion pesos, of which the electronic gaming industry contributed 22.5 billion pesos, a significant increase from 3.5 billion pesos in the same period last year, nearly six times higher. In the third quarter, the total revenue (GGR) of the Philippine gambling industry reached 94.6 billion pesos, with electronic gaming revenue soaring to 35.7 billion pesos, a year-on-year increase of 464.4%, nearly five times higher!
This explosive growth is not only due to policy support but also due to the widespread use of technology and mobile devices, allowing consumers to participate in gambling activities anytime, anywhere.
Although licensed casinos are still the main source of total revenue (GGR) in the Philippine gambling industry, the electronic gaming industry is rapidly rising and becoming the new favorite of the gambling industry.
PAGCOR Chairman Tengco predicts: "It is expected that by the end of the year, the licensing fee revenue from the electronic gaming sector will reach 78 billion pesos, which will provide strong support for achieving the annual revenue target of 100 billion pesos." "In the next few years, the revenue from the electronic gaming industry may surpass that of physical casinos, becoming the main source of revenue for the gambling industry."
(No wonder this old man didn't react so strongly to the POGO ban by Marcos; he had a backup plan, so he wasn't afraid of unemployment!)
This is also why some netizens feel that after the POGO ban, some local gambling platforms in the Philippines have become more active. Not only are many internet celebrities promoting them, but Philippine stars are also taking on advertisements, and there are various ads and web portals on Gcash and Grab.
That's because the Philippine government is intentionally relaxing its grip on online electronic games to boost revenue!
So, why has Marcos recently been particularly firm in his stance?
He has repeatedly made public statements, warning illegal operators of legal consequences, ordering local government officials to remain highly vigilant against suspicious activities, and requiring government departments to strengthen joint actions to comprehensively investigate the illegal activities left by POGO. He also said, "The licenses for online gambling and IGL have been revoked, and we will not tolerate destructive operations to continue."
This is because other sectors of the Philippine gambling industry, especially the strong development of land-based casinos and electronic games, have provided him with confidence!
The POGO ban is a ban, but the Philippines has not completely given up on all "business" related to gambling!
However, it is worth noting that for Chinese people, issues such as "blocking" and demanding fees in the Philippines, as well as the government's large-scale cleanup of illegal activities, have made it increasingly difficult to enter and exit the country legally and safely.
The gambling industry in the Philippines is still thriving, but for those Chinese who once contributed to the prosperity of POGO, the doors here seem to be gradually closing...
