What’s going on here?

The Philippine gambling industry is setting sights on a 17% revenue boost for 2025, aiming for $8.3 billion as electronic gaming and integrated resorts bet on success.

What does this mean?

The Philippine Amusement and Gaming Corporation (Pagcor) is forecasting strong growth in the gambling sector, following a 25% revenue rise in 2024, reaching 410.5 billion PHP. This upswing, driven by expansion in electronic gaming and upscale integrated resorts, is poised to counteract setbacks from the shutdown of offshore gambling operations. This action, directed by President Ferdinand Marcos Jr., aims to curb gambling appealing to Chinese consumers, sidestepping China’s stringent gambling laws. With anticipated revenues hitting 480 billion PHP in 2025, Pagcor will continue channeling profits into national treasury reserves, boosting public finances.

Why should I care?

For markets: Gaming industry’s ace up its sleeve.

The planned expansion of the Philippine gambling sector acts as a strategic buffer against market volatility, offering enticing prospects for investors looking at emerging markets. Companies effectively shifting from offshore to local operations could be poised for significant growth in 2025, fueled by increasing gaming demand.

The bigger picture: A revenue jackpot awaits.

The industry’s expansion highlights macroeconomic reinforcement, with Pagcor’s contributions expected to significantly bolster public finances. As the initial focus on tapping Chinese markets wanes, local improvements and regulatory changes could steer the economy towards self-sustained growth.