Thailand Casino Bid Challenges Philippine Gaming Dominance
The Philippines, currently Asia’s second-largest gambling hub, faces a formidable challenge from its neighbor, Thailand. As the Philippines aims for record gaming revenue in 2025, the prospect of legalized casinos in Thailand poses a «big threat» to the nation’s gaming industry, according to Alejandro Tengco, Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR).
The Philippine gaming sector projects robust performance in 2025, with estimated gross gaming revenue reaching ₱450 billion to ₱480 billion ($7.8 billion to $8.3 billion). This optimistic forecast is fueled by a resurgence in integrated resorts and the growing popularity of electronic games, Tengco told reporters. This follows a successful 2024, during which the Philippines achieved all-time high gaming revenue of ₱410.5 billion, solidifying its position as the region’s second-largest gaming destination after Macau.
However, this impressive growth is overshadowed by increasing regional competition. Tengco highlighted the potential impact of Thailand’s move to legalize casinos, emphasizing Thailand’s significant advantage in attracting gamblers and investors due to its substantially higher tourist arrivals. While the Philippines welcomed 5.4 million foreign tourists in 2024, Thailand attracted a staggering 35 million, and Japan, another potential competitor with casino plans for Osaka, saw a record 37 million visitors. This disparity in tourism numbers underscores Thailand’s potential to quickly become a dominant force in the Asian gaming market, potentially diverting revenue and investment from the Philippines.
The contrast in tourism figures is stark: Thailand’s established tourism infrastructure provides a ready-made platform for attracting a larger pool of potential gamblers. This inherent advantage, Tengco noted, presents a significant challenge to the Philippines' burgeoning gaming industry. He further emphasized the growing threat from Japan, which, with its planned Osaka casino, adds another layer of competition.
Currently, Thai lawmakers are considering the Entertainment Complex Bill, legislation that would legalize gambling in the country. This bill is closely watched by regional stakeholders, as its passage could significantly reshape the Asian gaming market.
In response to this looming competition, Tengco stressed the need for PAGCOR to streamline its operations and focus on its regulatory role. He highlighted the importance of divesting PAGCOR’s ownership of numerous small, state-owned Casino Filipino outlets, a move intended to eliminate perceived conflicts of interest and bolster the agency’s credibility as an impartial regulator. This privatization process, expected to begin next year, is a crucial step toward ensuring a level playing field within the Philippine gaming industry and attracting further investment.
The Southeast Asian gaming market is dynamic and highly competitive. The Philippines' ambition to remain a major player will require strategic planning and proactive responses to the evolving regional landscape, particularly considering Thailand’s potential emergence as a major gaming destination. The coming years will be crucial in determining how these competitive forces reshape the regional gaming market and the Philippines' place within it.
