Philippines faces 'big threat' as Thailand moves to legalise casinos

The Philippines' gaming industry is on track to achieve unprecedented growth in 2025, but the optimistic outlook is tempered by emerging regional competition, notably from Thailand.

This year, the projected gross gaming revenues (GGR) for the Philippines are between 450 billion pesos (US$7.8 billion) and 480 billion pesos (US$8.3 billion), according to the Philippine Amusement and Gaming Corp. (PAGCOR). This surge is largely attributed to the robust performance of integrated resorts and a booming electronic gaming sector. In 2024, the industry recorded a GGR of 410.5 billion pesos (US$7.1 billion), marking an all-time high.

However, the Thai government has recently approved a draft law to legalise casinos within large-scale entertainment complexes, aiming to boost tourism, create jobs, and attract investment. Prime Minister Paetongtarn Shinawatra emphasised that this move seeks to generate additional state revenue and curb illegal gambling activities.

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PAGCOR chairman and CEO Alejandro Tengco expressed concerns over Thailand's legislative developments, describing them as a "big threat" to the Philippines' position as Asia's second-largest gambling hub, following Macau.

Tengco highlighted that Thailand's substantial tourist arrivals could provide it with a competitive edge in attracting both gamblers and investors. Last year, Thailand recorded 35.5 million foreign visitors, compared to the Philippines' 5.4 million.

In response to these challenges, PAGCOR is implementing strategic measures to enhance the Philippines' gaming industry. Plans are underway to privatise state-owned Casino Filipino outlets, allowing PAGCOR to concentrate solely on its regulatory functions. "By decoupling, we will be able to show the world that we are fair. That there is no conflict of interest," Tengco told the media.

Despite the potential benefits, Thailand's casino legalisation faces domestic opposition. A recent survey revealed that a majority of Thais oppose the establishment of casinos and online gambling, citing concerns over social issues and the potential exacerbation of gambling addiction.

As the competitive landscape evolves, the Philippines remains vigilant, aiming to sustain its growth trajectory while addressing emerging challenges within the regional gaming industry.

The Philippines is also undergoing a major shift in its gaming landscape, with the government moving to shut down Philippine Offshore Gaming Operators (POGOs). During his State of the Nation Address in July, President Ferdinand R. Marcos, Jr. ordered that all POGOs be closed by the end of 2024, citing concerns over criminal activity, money laundering, and national security risks associated with the industry.

To attract more e-game operators, PAGCOR has implemented a rate reduction, lowering the fees it charges from 35% to 30% starting 1 January. The move aims to encourage unregistered entities to transition into legitimate operations, ensuring sustainable revenue for the industry.

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