Alejandro Tengco, the top gaming regulator at Pagcor, is seeking partnerships with the gaming industry to expand revenue beyond pre-pandemic levels.
Tengco, the chairman and CEO of Pagcor, aims to increase the activities and scope of Philippine offshore gaming operators (POGOs), disregarding China’s tourism blacklist threats.
Appointed by President Ferdinand “Bong-Bong” Marcos Jr, Tengco has a clear stance on gaming and Pagcor’s role in it, unlike previous president Rodrigo Duterte and his Pagcor chair Andrea Domingo.
Tengco wants to expand gaming to increase Pagcor’s revenue and contribute to “nation building” through payments to the national treasury and other agencies.
In an interview, Tengco emphasized the importance of forming mutually beneficial partnerships with the Philippine industry and addressing the needs of operators to take Philippine gaming to greater heights.
Tengco is interested in reviving attempts to sell Pagcor’s Casino Filipino operations and focusing solely on regulation.
Last year, Pagcor and its licensees generated gross gaming revenue of PHP214.3 billion ($3.95 billion), 84% of 2019’s record. The projected GGR for 2023 is PHP244.8 billion, 95% of the 2019 total.
The Philippine gaming industry is experiencing resurgent growth, particularly in Entertainment City on Manila Bay and beyond, with notable resorts such as Solaire, City of Dreams Manila, Okada Manila, Newport World Resorts, and Nustar Resort and Casino attracting visitors.
Although development enthusiasm is mainly focused on areas outside Entertainment City, Tengco believes it is not overbuilt, highlighting the strong numbers in the industry.
Okada Manila’s resort has had a turbulent history, including a temporary seizure by Kazuo Okada, the resort’s founder, which was later overturned by Pagcor through a court order.
The Philippine gaming market outlook remains attractive, with a balanced mix of domestic and international players. The government is prioritizing tourism, which contributes to the gaming industry’s potential growth.
Regarding China’s rumored blacklist against countries encouraging Chinese citizens to gamble, Tengco denies its existence and aims to expand POGO and PIGO activities to increase Pagcor’s revenue. Chinese visitor arrivals are expected to increase throughout the year, following the reopening of outbound travel from China.
Korean junket play is increasing as a logical alternative to Macau’s depleted junket sector, benefiting the gaming industry in the Philippines.
Pagcor is revising junket regulations to address anti-money laundering and counter-terrorism financing concerns and be removed from the global Financial Action Task Force’s grey list.
The change of ownership at Pagcor licensee Travellers International Hotel Group was handled independently by the parties involved, with Pagcor’s involvement limited to approving the decision.
