PAGCOR Contributions Surge 25% in May, Reflecting Gaming Revival

PAGCOR Contributions Surge by 25% in May, Reflecting Gaming Sector Resurgence

The Philippine Amusement and Gaming Corp. (PAGCOR)’s contribution to the government rose by 25% year-over-year in May, underscoring the gaming sector’s continued resurgence in the Philippines. Treasury data show the gaming regulator remitted PHP3.27 billion ($55.9 million) to the state in May 2024, up from PHP2.6 billion ($44.4 million) in May 2023.

According to the Manila Bulletin, PAGCOR’s May remittance increased its total for the first five months of the year to PHP17.38 billion ($297 million), a 31% rise from PHP13.25 billion ($226.5 million) in the same period last year.

PAGCOR’s contributions from January to May 2024 exceeded the pre-pandemic total of PHP13.25 billion ($226.5 million) in 2019, reflecting the gaming sector’s recovery and resilience post-Covid-19. The Philippine government had enforced strict lockdowns starting March 16, 2020, lasting two years, among the longest globally.

During the pandemic, the gaming industry faced challenges, with casinos operating at reduced capacity and restrictions on foreign gamblers. By law, PAGCOR, the third-largest revenue-generating agency for the government, must allocate 50% of its net revenue to the national government.

For 2024, the Treasury expects to receive PHP29.87 billion ($511 million) from PAGCOR. Earlier reports indicated that the country’s gross gaming revenues (GGR) in the first quarter reached PHP81.70 billion ($1.4 billion), an 18.5% increase from PHP68.92 billion ($1.18 billion) in the same period last year.

PAGCOR Chairman and CEO Alejandro H. Tengco stated that the electronic games sector continues its record-breaking performance, generating PHP22.5 billion ($385 million)—over six times the first quarter revenues of PHP3.5 billion ($59.8 million) in 2023.

PAGCOR anticipates its 2024 GGR to reach PHP336.38 billion ($5.9 billion), a 17.9% increase of PHP51.11 billion ($906.3 million) compared to 2023’s PHP285.27 billion ($5 billion).

Projections for PAGCOR-run casinos indicate robust performance, with expected revenues from gaming operations reaching PHP81.27 billion ($1.4 billion) by year-end, marking a 2.39% growth of PHP1.9 billion ($33.6 million) over 2023’s PHP79.37 billion ($1.4 billion).

Original Story by: AGB