Inflation, ME war cut gaming revenue in Q1

MANILA, Philippines — The Philippine gaming industry saw a 15.9 percent decline in gross gaming revenues (GGR) in the first quarter this year, due to softer electronic gaming sector turnout, tied to weaker household spending amid faster inflation and the Middle East war.

In a statement, the Philippine Amusement and Gaming Corp. (PAGCOR) said the country’s gaming industry posted P87.6 billion in GGR in the January to March period. This was 15.9 percent lower than P104.12 billion year-on-year.

“We attribute the first quarter dip to several factors, including softer discretionary spending amid geopolitical tensions in the Middle East and rising inflationary pressures,” PAGCOR chairman and CEO Alejandro Tengco said.

The US-Iran war against Iran pushed inflation to a three-year high of 7.2 percent in April, averaging 3.9 percent for the first quarter.

PAGCOR said a dampened performance in the electronic gaming sector largely drove the double-digit decline in the January to March period.

The electronic sector — including e-games, e-bingo, bingo and poker — sank by 22.4 percent to P31.90 billion during the period, accounting for 46 percent of the total GGR pie.

At the same time, licensed casinos generated P44.52 billion, surpassing the e-games sector as the largest GGR contributor at 50.8 percent.

The remaining 3.6 percent or P3.17 billion of the GGR was contributed by PAGCOR-operated casinos, which are at risk of being privatized amid the regulator’s plans to shed its operator role.

Despite this, Tengco remains upbeat about the local gaming industry outlook, as operators continue to invest in integrated resort developments, digital innovation and responsible gaming initiatives.

“We remain hopeful that once the geopolitical tensions stabilize, consumer confidence and discretionary spending will also gradually recover, which should help support improved industry performance,” he added.

Tengco earlier said the gaming industry is starting to feel the burden of soaring oil prices on business activity and mobility amid the ongoing Middle East war.