PAGCOR Net Income Doubles in 9-Month Period, Electronic Games Drive Revenue Growth

October 31, 2024 Philippines Industry Updates

The Philippine Amusement and Gaming Corporation (PAGCOR) announced that its net income nearly doubled during the first nine months of the year, largely due to the booming Electronic Games sector. PAGCOR’s net income reached PHP9.63 billion ($165 million), a substantial increase from the PHP4.85 billion ($83 million) recorded during the same period in 2023.

The overall revenue for PAGCOR soared to PHP79.43 billion ($1.36 billion), reflecting a 42 percent rise compared to the PHP55.95 billion ($960 million) earned in the first nine months of the previous year. This impressive performance marks a significant recovery and growth trajectory for the state gaming regulator, particularly in light of recent challenges posed by regulatory changes.

Alejandro H. Tengco, Chairman and CEO of PAGCOR, highlighted that the Electronic Games sector has been the primary driver behind this financial success. “The Electronic Games sector alone contributed PHP28.22 billion, or 35.52 percent of our gaming revenue,” he stated in a PAGCOR press release. The licensed casino sector also played a vital role, contributing PHP24.50 billion ($420 million), which accounted for 30.84 percent of total revenues.

Tengco expressed optimism about the future, indicating that PAGCOR is well-positioned to meet its ambitious revenue target of PHP100 billion ($1.72 billion) by year-end, despite the recent ban on Philippine offshore gaming operators (POGOs) enacted by President Ferdinand Marcos Jr. in July. This ban, which mandates the closure of all POGO operations, has raised concerns about the potential impact on the gaming industry. However, Tengco believes that PAGCOR’s diverse revenue streams will help mitigate any adverse effects.

PAGCOR’s financial report provides a detailed breakdown of its revenue sources. Out of the total PHP79.43 billion ($1.36 billion), approximately PHP69.88 billion ($1.20 billion) was derived from gaming operations and license fees. The remaining income included PHP6.43 billion ($110 million) from related services and PHP3.11 billion ($53 million) from various other sources.

The increase in revenue has also led to a rise in PAGCOR’s contributions to nation-building initiatives, which grew by 40.39 percent to PHP48.88 billion ($838 million) compared to last year’s PHP34.82 billion ($597 million). Tengco emphasized the importance of these contributions, stating, “From our total contributions to nation-building, PHP33.19 billion ($569 million) went to the National Treasury as the government’s 50 percent share.”

Notably, half of the remittances to the national coffers, amounting to PHP16.59 billion ($285 million), have been earmarked for PhilHealth, supporting the Universal Healthcare Law. This allocation underscores PAGCOR’s role in enhancing the country’s healthcare system.

In addition to its contributions to the National Treasury, PAGCOR also fulfilled its tax obligations, paying PHP3.49 billion ($59.87 million) in franchise taxes and PHP421.35 million ($7.23 million) in corporate income taxes to the Bureau of Internal Revenue. The Philippine Sports Commission (PSC) received a share of PHP1.65 billion ($28 million), representing the 5 percent allocation mandated by law. Moreover, PHP90.68 million ($1.56 million) was designated as incentives for athletes and coaches who excelled in international competitions, reflecting PAGCOR’s commitment to promoting sports development in the country.

PAGCOR’s contributions extend beyond financial remittances. The organization funded a variety of significant socio-civic programs under the Office of the President, totaling PHP9.26 billion ($159 million) in the first nine months. This funding supports various community initiatives and development projects aimed at improving the quality of life for Filipinos across the nation.

Further demonstrating its commitment to social responsibility, PAGCOR allocated PHP525.95 million to cities hosting Casino Filipino branches, contributing to local development and infrastructure projects. Additionally, PHP99.08 million was directed to the Board of Claims under the Department of Justice, which compensates victims of wrongful imprisonment. The Renewable Energy Trust Fund also received PHP140.2 million ($2.4 million), aligning with the government’s efforts to promote sustainable energy initiatives.