A consequence of the Philippine Offshore Gaming Operator (POGO) ban was the sudden plunge in the popular slot machine games and the local manufacture of the equipment.

With its regional influence on the slot machine market waning, the Philippines now accounts for just 6.2 percent of Asia’s $153 billion gaming equipment market — down sharply from projections of a 15-percent share by 2025.

Korean gaming giant Kangwon Land noted that while the Philippines remains appealing due to its openness to international suppliers and lower costs compared to Macau, the current government’s aversion to POGO is less welcoming.

“The Philippine market offers a wide variety of games, featuring suppliers like Aristocrat, Light & Wonder, Jumbo, and others,” a Kangwon Land official noted.

He said high-stakes Korean tourists had found value in Philippine casinos: “If you play $10,000 you can get a room and many services. In Macau, you get nothing.”

The correlation between POGO and slot machines is the loss of VIP players in casinos who were POGO operators.

These cash-rich operators, many of them high rollers, were significant patrons of land-based casinos, particularly of slot machines.

Their exit has led to a sharp decline in VIP gaming activity, with major casino resorts reporting drops in high-stakes gambling revenues.

POGO-linked venues also accounted for 68 percent of slot machine placements. With the restriction, these venues are now operating at just 19 percent of capacity, leading to a 42-percent year-on-year drop in slot revenues to P13.4 billion in the second quarter.

As POGOs vanish and the domestic slot sector struggles to redefine itself, the slot machine industry may find itself caught in a game increasingly played elsewhere.