The Philippines casino industry CAGR is estimated to average 9% between 2024 and 2027. This growth has attracted attention from various stakeholders. On the one hand, investors are rushing to introduce more casinos and games in the market in response to this high market uptake. On the other hand, more players have been signing up for online casino Philippines sites, further making the market lucrative. To top it all off, the government has put its best foot forward, ensuring investors and players have the support they need in their endeavors. We look at how the country has diversified its market and what this spells for everyone.
The Need for Diversification
Necessity is the mother of invention. And this could not be truer in the case of the Philippines. For a long time, the country relied on high-rollers from mainland China, who injected a lot of money into the games. But two issues arose:
- The COVID-19 pandemic: As the virus spread, gamblers could not travel as often as they wanted, which put a halt in many operations. Casino operators had to figure out other ways to generate revenue to remain afloat in a competitive industry.
- The increased regulations: The Philippines has often been under fire due to issues such as money laundering, which have affected operations in the country.
With these setbacks, it was important for all stakeholders to work together to find ways to boost this lucrative sector.
The Change in Regulations
The Philippines has previously made headlines due to suspicious gaming activities, including money laundering, which have landed it on the gray list. Luckily, the Philippine Amusement and Gaming Corporation (PAGCOR) has been working hard to reverse this in the following ways:
- Stricter licensing arrangements: Operators must pass several checks before offering their services to the domestic market. These include financial and game fairness checks that prove they have the best interests of the players.
- Increased monitoring: All licensed operators are subject to specific guidelines they must follow to maintain their permits. Those found violating these requirements can get suspended or have their licenses revoked.
- More market education: Due to the prevalence of online scams and illegal operators, the government has instituted measures to educate the public on the gaming market, including where to report illegal activities.
Thanks to these regulations, licensed operators can enjoy more trust from players and focus their efforts on bettering their services, knowing that the government has their back.
The Diversity Angle
The recent changes in the legal environment have made the casino industry more lucrative to players and operators, paving the way for the following diversification angles:
- New markets: The previous reliance on the mainland China market was akin to having all eggs in one basket. Operators have now branched out to regions such as Japan and Singapore to broaden their reach. Moreover, they have focused on the domestic market, which has proven promising. This increased market coverage will surely enable operators to grab a big market share as it gains traction in the next decade.
- Increased casinos: PAGCOR has worked hard to encourage more investors to sink their money into the domestic casino market. Already, many investors have broken ground and are eager to implement their projects, with many focusing on resort-style casinos. These will attract local and international players, which will augur well with the ongoing market expansion. Per Alejandro Tengco, the PAGCOR chair, players should expect a new casino every other year in different parts of the country. These will boost the booming tourism industry while allowing players to enjoy a luxurious gaming experience without leaving the country.
- More game options: Operators are thinking outside the box to ensure that the game variety matches the needs of their increasing market. As a result, players can now access a wide range of games, ranging from games of chance to games of skill. The variety is even wider online due to the lack of space limitations. As such, one provider can host thousands of games, allowing them to meet different needs under one roof for a fraction of the cost.
- More e-gaming opportunities: Land-based casinos are not the only ones set to benefit from this increased governmental support. Online gaming is also set to grow due to the increased access to smart devices: As more people can afford smartphones, tablets, and consoles, access to online gaming will increase, enabling operators to reach an even wider market. At the same time, operators have been investing more in mobile web browser games and mobile apps that can help players access games more conveniently, which has been a hit with the current generation.
The growth of this industry is not only good for players and operators but also for the country as a whole. More people will secure jobs as players or workers in sectors that will benefit from these increased playing opportunities. Moreover, as the government collects more revenue, these funds will go a long way in bettering the country’s infrastructure, and these positive effects will spill over to other industries.