New PAGCOR slot machines to yield P18 billion revenues

MANILA, Philippines — State-run Philippine Amusement and Gaming Corp. (PAGCOR) is expecting to generate at least P18 billion in revenues over the next five years from the modernization of its slot machine operations.

PAGCOR chairman and CEO Alejandro Tengco said the state gaming agency continues to embark on a modernization program to increase revenues.

One of which is through the upgrade of its slot machines to help sustain growth momentum by entering into negotiations with different manufacturers for its modernization.

PAGCOR will replace old machines with some 3,000 brand-new units of electronic gaming machines under a lease agreement.

“We expect the delivery of 3,000 brand-new slot machines by January next year,” Tengco said.

“We have an agreement in place with a supplier for a revenue-sharing scheme for these new machines which we expect to generate at least P18 billion in revenues in the next five years,” he said.

Latest data from PAGCOR showed that slot machines contributed P2.41 billion in revenues in the second quarter of 2023.

Further, PAGCOR is also modernizing its table games to attract more players and contribute to increased revenues. In the April to June period, table games raked in P1.92 billion in revenues for the agency.

PAGCOR is likewise sticking to its plan to start its own online casino as part of measures eyed at boosting market growth, providing more convenient gaming experience, and encouraging healthy competition.

“This will give PAGCOR a significant share of the very lucrative and profitable online market,” Tengco said.

Meanwhile, the PAGCOR chief maintained that increased demand for leisure, travel and entertainment would sustain the growth trajectory of the local gaming industry moving forward.

Tengco said gross gaming revenues (GGR) for 2023 is expected to hit pre-COVID levels. PAGCOR is projecting a total of P272.74 billion in GGR this year.

“This is not bad considering that many of our traditional high rollers and junkets have not fully returned, but our domestic players and the influx of new tourists have filled the void,” Tengco said.

Tengco noted that future growth of the gaming industry would also be supported by the opening of more integrated resorts, including those in Clark, which is projected to become a major gaming and tourism hub.