Pagcor Reports 26.8% Increase in Expenses, Despite Revenue Boost

The state-run Philippine Amusement and Gaming Corp. (Pagcor) disclosed total expenses of nearly PHP15.64 billion (US$266.7 million) for the first half of 2024, a 26.8% increase compared to the same period last year, according to a financial statement issued on Monday.

Personnel service expenses amounted to PHP9.28 billion, reflecting a 28.1% year-on-year rise, while maintenance and other operating costs surged by 52.5% to PHP5.39 billion.

Despite the increase in expenses, Pagcor’s revenues saw a significant boost. The agency reported gross revenues of PHP51.76 billion, up 42.9% from the previous year, and a net income of approximately PHP6.57 billion, marking a 121.5% increase year-on-year.

Gaming operations remained the main revenue driver for Pagcor, contributing PHP 45.39 billion. Of this, the electronically delivered gaming sector, including “e-Bingo, e-Games, and bingo grantees,” generated PHP 20.66 billion, or 45.5% of the total revenue. Licensed commercial-sector casinos contributed PHP 16.06 billion, or about 35.4% of Pagcor’s first-half revenues.

Additionally, Pagcor reported that the Philippine gaming sector, including non-casino operations, generated gross gaming revenue (GGR) of just over PHP 194.74 billion in the first half of the year, a 19.21% increase from the previous year.

On July 22, President Ferdinand Marcos Jr. announced that Philippine Offshore Gaming Operators (POGOs), now known as Internet Gaming Licensees (IGLs), must end their operations by the end of the year. Pagcor noted that this ban would have a minimal impact on the overall Philippine gaming industry, as this segment represents less than 5% of the total GGR.

Source: GGRAsia