THE Philippine Amusement and Gaming Corp. (PAGCOR) said revenue for the first six months rose 35.64% on the strength of improved gaming operations.
In a statement late Wednesday, PAGCOR said revenue during the period was P36.2 billion, driven primarily by the 38% rise in income from gaming operations and regulatory fees from licensees to P34.12 billion.
“The higher income from gaming operations during the first semester of this year was driven by the increase in total industry gross gaming revenue (GGR),” PAGCOR said.
GGR during the first half rose 48.68% to P136.37 billion.
PAGCOR set aside P16.2 billion for transmission to the Bureau of the Treasury. It also remitted P8 billion to the Philippine Health Insurance Corp., and P3.61 billion for the government’s socio-civic programs.
It also remitted P1.7 billion to the Bureau of Internal Revenue to help settle its 5% franchise tax obligation and P19.92 million to the Justice department’s Board of Claims.
“The state-run gaming and regulatory firm likewise remitted P810.47 million to the Philippine Sports Commission (PSC). An additional P17.97 million was released to the PSC as Sports Incentives and Benefits for national athletes and coaches who won in international competitions. Meanwhile, cities hosting PAGCOR’s Casino Filipino branches also received P225.86 million,” it added.
PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said that the agency remits “close to 70%” of its revenue to the government through direct remittances or required contributions.
The company is also “not dependent on any government appropriation or subsidy.”
Government-owned or -controlled corporations are required to surrender 50% of their profits to the government in the form of dividends.
Mr. Tengco said that it is “highly possible” for PAGCOR to exceed its pre-pandemic income levels by the end of the year.
“PAGCOR’s revenue for the first half of 2023 was just P2.59 billion or 6.68% short of its pre-pandemic output of P38.81 billion in 2019,” he said.
Mr. Tengco said PAGCOR is expecting to generate “at least” P272.74 billion in revenue by the end of the year. In 2022, revenue totaled P58.96 billion.
“We hit approximately P136.37 billion GGR in the first semester. With the favorable business environment that we have right now, we are hopeful that we can reach or even surpass our revenue targets and contribute more to nation-building,” he said.
“PAGCOR will certainly ride the tide of our country’s economic growth. As economic activities reach pre-pandemic levels, we are optimistic that we can sustain the gaming industry’s growth momentum as we fortify our regulatory policies to attract more investors in the Philippines,” he added. — Luisa Maria Jacinta C. Jocson