The gaming industry is in a state of transformation, with land-based and online platforms evolving rapidly to meet shifting consumer demands and technological advancements. This dual-front growth, accelerated by regulatory acceptance, has opened untapped markets and driven revenue records across both physical and virtual gaming spaces. In this dynamic environment, operators are tasked with balancing the rich traditions of land-based gaming with the boundless potential of online platforms. 

In an exclusive interview with SiGMA News during the SiGMA Land-Based Retreat in South Korea, Harmen Brenninkmeijer, Managing Partner of NYCE International, explained that these two formats aren’t necessarily in competition. Instead, they are beginning to coexist harmoniously, potentially setting a benchmark for regulatory frameworks and industry practices, particularly across Asia. 

“Everything grew out of the land-based [gaming], and the land-based was extremely important to the economies in general. Easier for the governments to understand and to regulate,” Brenninkmeijer said. Due to its structured nature, like large integrated resorts (IRs) or casinos, land-based gaming presents a clear model of operation that enables straightforward regulatory oversight. This has made land-based gaming foundational in countries like the Philippines. 

iGaming’s rise and regulatory challenge 

Online gaming, or iGaming, has surged thanks to rapid technological advancements. According to Brenninkmeijer, “In iGaming, technology rules. But at the same time, we have many people entering iGaming because the industry is becoming massive.” This growth has brought thousands of operators into the market, creating challenges in establishing regulatory frameworks, especially in regions like Asia, where some countries remain hesitant to regulate the digital gaming sector. 

Data from Statista projects iGaming revenue to reach $97.15 billion this year, with an annual growth rate of 6.47 percent, reaching a market volume of $132.90 billion by 2029. Such figures underscore the need for robust governance as online gaming continues to grow. 

Philippines’ PIGO initiative: A case study in integration 

The Philippines provides a compelling example of integrating land-based and online gaming through its PIGO (Philippine Inland Gaming Operators) initiative, which mandates a land-based presence for any operator wishing to go online. 

“In the Philippines, there is a mandatory requirement to have a land-based presence to go online,” Brenninkmeijer explained. “Now, most countries don’t have that, but in the Philippines, it’s more driven by the regulatory environment, and the operators back it strongly.” 

One notable development in this model is “live slots,” already popular in the Philippines and gaining traction globally. By linking physical slot machines to online platforms, users can play in real time from remote locations. Brenninkmeijer describes this as similar to “live casinos,” where table games are streamed with real dealers, allowing online players to experience the excitement of a casino floor from home. “Live slots are becoming very strong in the Philippines right now,” he added, highlighting how it enhances customer retention by providing familiarity and continuity in games across both physical and digital formats. 

The PIGO initiative, introduced in late 2020, helped mitigate economic losses in the gaming sector due to COVID-19, allowing integrated resorts and e-cafes to enable registered players to play remotely. This marked Asia’s first regulated approach to online gaming for local players, setting a precedent for other nations to consider. 

Overcoming initial hesitations and expanding opportunities 

“Why not tap into another stream of revenue from different types of players?”

– Harmen Brenninkmeijer

Brenninkmeijer addressed the initial hesitation among land-based operators to go online, driven by fears of cannibalising physical business. “Everybody was afraid that if I’m land-based and I go online, my customers will shift online, which isn’t good for my land-based operation,” he noted. “But that’s clearly not the case. Why not tap into another stream of revenue from different types of players that are playing online?” He emphasised that online gaming has become a valuable complement to land-based operations, attracting new player demographics without diminishing on-site attendance. 

This integration of land-based and online gaming has shifted from an option to a necessary strategy for sustainable growth. As Brenninkmeijer pointed out, younger generations often prefer digital environments, while older players may still favour in-person experiences. Offering both formats allows operators to cater to diverse demographics and secure long-term sustainability. 

Prioritising responsible gaming and compliance 

Brenninkmeijer also stressed the importance of responsible gaming and compliance. “Being in the gaming industry is a privilege, not a right,” he said, calling for responsible gaming as a core pillar for industry success. Technological advances, particularly in AI, have given the gaming industry new tools to monitor behaviour and encourage responsible play. 

Without proactive measures, regulatory backlash could hamper industry growth. Brenninkmeijer cited past government crackdowns in Russia, Italy, and Australia as reminders of the risks if the industry fails to self-regulate. He proposed that operators receive a “stamp of approval” for their responsible practices, boosting credibility and incentivising further commitment to player protection. 

Looking forward: A collaborative path to industry growth 

The integration of land-based and online formats offers a unique opportunity to shape the gaming industry’s future. By catering to diverse customer preferences and emphasising regulatory cooperation, the sector can grow sustainably. In Brenninkmeijer’s words, both land-based and online gaming have their place, but only through collaboration, accountability, and commitment to responsible gaming can they secure a prosperous future.