PAGCOR head Alejandro Tengco warns that Thailand's casino legalization efforts pose a significant threat to the Philippine gambling industry due to Thailand's strong tourism appeal.
PAGCOR head Alejandro Tengco warns that Thailand's casino legalization efforts pose a significant threat to the Philippine gambling industry due to Thailand's strong tourism appeal.
As Thailand works double-time to legalize casinos in the kingdom, the chief of the Philippines’ gaming regulator believes that this will threaten the country’s own casino market.
In an interview with reporters, Philippine Amusement and Gaming Corporation (PAGCOR) President Alejandro Tengco described Thailand’s own tourism landscape paired with this proposal to legalize casinos as a “big threat.”
The bigger picture: Just how large is the Philippines in gambling?
The Philippines is Asia’s second-biggest gambling market, with only Macau being larger. Locals enjoy more liberalized rules, which offset a ban on offshore casino operations last year.
Tengco believes land-based casinos will continue to lose customers to online gambling sites.
"We expect both online and physical gaming to reach equal footing within the next 2-3 years," he said.
More players who previously used unregistered sites are now joining legal platforms.
Gross gaming revenue in the Philippines could grow by as much as 17 percent this year, on a rise of electronic gaming and contributions from improving results at integrated resorts. Tengco said GGR could range between PHP 450 billion and PHP 480 billion ($7.77 billion - $8.3 billion) this year. This is an increase from PHP 410.5 billion ($7.08 billion) last year.
Currently, Thailand’s government, led by Paetongtarn Shinawatra, is moving to legalize casinos within integrated resorts. The proposal eyes expensive entry fees for locals to discourage excessive gambling, citing societal concerns. Additionally, Thailand, which holds the position of the second-largest economy in Southeast Asia after Singapore, is aiming to enhance its tourism sector by leveraging casino resorts to attract more international visitors and boost its global ranking as a top travel destination.
The gaming industry makes up more than half of Philippines’ tourism earnings. If Thailand allows casinos, it could hit the Philippines hard. Right now, about 30% of foreign visitors in the Philippines go to casinos. Many come from China, South Korea, and Japan. With Thailand emerging as a new player in the gaming industry, it gives patrons another option within the region.
Read related article: Can Macau’s Casinos Survive Asia’s Rising Competition?
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