How is the Powerful Online Gambling Industry Affecting Philippines’ Office Market?
The online gambling industry has expanded by leaps and bounds in the recent times. Different countries have adopted different measures to regulate their online gambling industry. While online gambling in European countries such as Italy, France, and Spain ranks high, Asia’s online gambling industry is also not lagging behind.
But there’s a connection that we are probably ignoring, the ever-increasing online gambling industry’s effect on the Asian office market. This is particularly seen in the Philippines, where online gambling is becoming a prominent phenomenon.
Online gambling and office market
According to the analysts from LeeChiu Property Consultants (LPC), the robust online gambling industry in the Philippines is taking up more office spaces in the country this year. As per the Manila Standard’s report, the Philippines’ online gambling industry is the second largest demand generator for office space in the country. The industry is a little behind the business process outsourcing companies that create the maximum demand for office spaces in the Philippines.
David Leechu, chief executive officer of LPC, estimates that nearly 400,000 to 500,000 square meters of office space would be consumed by the online gambling industry this year. However, the BPO sector is projected to take up about 800,000 square meters of office space, nearly double of what the online gambling industry would take up. Leechu also said that the online gambling industry’s demand for office spaces grew “overnight”, and it could reach the mark of BPO companies in the near future.
Over the past six months, the online gambling industry in the Philippines has taken up nearly 83,960 square meters of office space, primarily in Alabang, Bay Area, and Bonifacio Global City. Besides office space, the online gambling industry is also likely to take up spaces in residential units across the Metro Manila area.
The future of Philippines’ office market
David Leechu said that this trend in the Philippine office market would continue for the next couple of years. The Philippine Amusement and Gaming Corporation (PAGCOR) run by the state intends to give more licenses to online gambling companies by approving thirty-five applications for Philippine Offshore Gaming Operations (POGO) licenses.
Andrea Domingo, the chair of PAGCOR, underscored the significance of POGO licenses in increasing PAGCOR’s revenue from 60 billion to 65 billion Philippine pesos in 2017. She said that there will be a second group of applicants who will be granted POGO licenses for operating online gambling activities in the country.