PAGCOR CEO Alejandro Tengco believes that advancements in modern technology and mobile devices will make online gaming is the future of the industry.
Alejandro Tengco, chairman and CEO of the Philippine Amusement and Gaming Corp (PAGCOR), believes that advancements in modern technology and mobile gadgets are steering online gaming to become the future of the industry. He made these remarks during FBM's 'Champion’s Night' event held on November 19, 2024, in Manila. FBM is a supplier of electronic gaming machines, including casino and bingo slots.
“Truly, the future of gaming will be online,” Tengco was quoted as saying in a report published by GGRAsia. He pointed out that the combined gross gaming revenue (GGR) from electronic gaming and bingo operations exceeded P40 billion (US$679.2 million) in the third quarter of 2024. This represents a 236.9% increase from the same period last year, based on official data.
The PAGCOR chairman highlighted that the electronic gaming segment drove this growth, generating P35.71 billion in GGR—a 464.4% year-on-year increase—by the end of September. Tengco attributed this success to the adoption of modern technology, stating the industry “has grown in terms of GGR and this impressive performance shows that modern technology and mobile gadgets have already become the future of gaming.”
Tengco also praised FBM for its transformation over the past 22 years, from a small business into one of the country’s largest gaming equipment suppliers with around 32,000 devices already in operation throughout the Philippines.
He highlighted FBM's contributions, including the launch of its online gaming platform, FBM E-Motion, earlier this year, and a US$10-million investment in a new software development facility in Manila. Mr. Tengco said FBM was making "positive contributions" to the industry and fostering the expansion of the sector.
During the event, Tengco also referenced PAGCOR’s decision to reduce the GGR remittance rate for both land-based and online gaming platforms, starting January 2025. The rates will drop to 30% for
land-based licenses and 25% for integrated resorts involved in online gaming.
Addressing industry stakeholders, he said, “As you very well know, by January 1, 2025, your rates will come down to 30 percent.” Tengco encouraged operators to reinvest the savings into marketing efforts to
attract more customers and further boost GGR, adding, “I’m not asking you for anything, except that we hope you will use a big chunk of that additional discount for your marketing initiatives, so that you will be able to attract more customers, and drive GGR up.”
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