MACAU BUSINESS H. Tengco, Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR)


T


he ASEAN Gaming Summit 2025 took place this year between 17 and 19 March at the Shangri-La The Fort in Manila, with the Philippines and Thailand in focus. Opening the summit, Alejandro H. Tengco, Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR), announced the Philippines’ remarkable standing as the second-largest market in gross gaming revenue (GGR) in Asia, trailing only behind Macau. This achievement is particularly noteworthy considering the recent challenges the industry has faced. In 2024, President Ferdinand R. Marcos Jr. issued an executive order imposing a ban on offshore and internet gaming, known as Philippine Offshore Gaming Operators (POGOs), in a decision stemming from concerns that the negative impacts of offshore operators—an industry that thrived under the previous Duterte administration— outweighed potential economic and social benefits. Marcos cited increased crime rates, social instability, and the exploitation of vulnerable individuals associated with offshore gaming as key reasons for the ban. While this presented significant challenges for the industry, Tengco emphasised that the ban also provided an opportunity for PAGCOR to manage the orderly cessation of POGOs while minimising economic repercussions.


Despite these hurdles, the Philippine gaming sector has demonstrated remarkable resilience. Tengco reported an impressive industry-wide GGR of PHP410 billion ($7.1 billion), marking a 25 per cent increase from 2023. The GGR in the Philippines was the second highest in Asia last year, following Macau’s GGR of MOP226.78 billion. Notably, brick-and-mortar gaming establishments contributed PHP201 billion to the GDP, while the burgeoning e-games and e-tables sector achieved a staggering 165 per cent growth, generating PHP154.5 billion in GGR. Tengco expressed confidence in the future of Philippine gaming and asserted that as offshore gaming exits, PAGCOR recognises the need to embrace a technology-driven landscape. The authority is keen to welcome electronic gaming, ensuring that it is accompanied by stringent oversight to maintain integrity and security within the sector. He also projected that GGR could rise to between PHP450 billion and PHP480 billion in 2025, fuelled by the growth of electronic gaming and improved results from integrated resorts. In addition to discussions on growth and resilience, the summit addressed crucial regulatory developments. Tengco highlighted that the ban on offshore gaming operators played a significant role in the Philippines’ removal from the Financial Action


Task Force (FATF) “grey list” of jurisdictions. The country was taken off the list on 21 February 2025, after successfully addressing the 18 action items identified by the FATF in June 2021.


WAITING FOR THAILAND The summit also featured discussions on regional dynamics, particularly the potential threats posed by Thailand’s plans to legalise casinos. Tengco warned that the disparity in tourism volumes between the two countries could significantly impact the Philippine gaming industry. With Thailand attracting approximately 35 million tourists in 2024 compared to the Philippines’ fewer than six million, the competitive landscape could shift dramatically. If legalised, Thailand is projected to compete with Macau and Las Vegas as the third-largest gaming destination, with annual revenues potentially reaching up to US$9.1 billion by 2031, according to a Citigroup report last year. Gaming operators such as Melco, MGM, and Galaxy are already emerging as potential contenders to secure a licence in the Land of Smiles.


During a panel, industry experts underscored the significant enthusiasm among local Thai investors, which stands in stark contrast to the hesitancy observed in Japan. Muhammed Cohen, Asia Editor-at-Large for iGaming Business/Clarion


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