E-games push PAGCOR gaming revenues up 32% in Q2

The Philippine Amusement and Gaming Corp. (PAGCOR) saw a 32% increase in its gross gaming revenues (GGR) for the second quarter, largely driven by the electronic games (e-games) sector that grew its top line by over six times to a fresh record high.

PAGCOR said its GGR hit P89.23 billion, 32.32% higher than the P67.43 billion the same quarter in 2023, and 9.21% higher than the P81.70-billion industry quarter in the first quarter.

The agency attributed the growth to the e-games sector which brought in P30.85 billion, reflecting a 525% increase from the P4.93-billion the previous year.

“This sector continues to surpass targets and should help cover up for any shortfall resulting from the President’s order banning offshore gaming operations or POGOs (Philippine offshore gaming operators) by the end of the year,” PAGCOR chairman and chief executive officer Alejandro Tengco said.

President Ferdinand “Bongbong” Marcos Jr., in his third State of the Nation Address (SONA), announced the ban on POGOs, and ordered PAGCOR to wind down and stop all operations by the end of the year.

A cost-benefit analysis by the Department of Finance (DOF) showed that the POGO industry had a net cost of P99.52 billion to the Philippines, equivalent to 0.41% of the country’s economy as of 2021.

This comes as POGOs saw a total cost of P265.74 billion to the economy, of which P84.87 billion were direct economic costs — P39.94 billion on the estimated decrease in foreign investments due to crime, P28.62-billion decrease in inbound tourism revenues, P15.42-billion decrease in foreign investments due to corruption perception, and P0.5 billion on additional costs for law enforcement and immigration.

In terms of total benefits, POGOs contributed P166.49 billion. This includes P40.65 billion in direct benefits — P27.80 billion in income from housing space rentals, P5.26 billion from withholding taxes, P4.44 billion from gaming taxes, P3.15 billion in revenues to the PAGCOR.

Licensed casinos, meanwhile, brought in P49.48 billion in the second quarter, down from P51.70 billion in the comparable period of 2023, and 10.41% lower than the P4.69 billion in the first quarter.

PAGCOR-operated casinos under the Casino Filipino brand reported P4.20 billion in revenues, reflecting a 14.80% decline from P4.93 billion the previous year, and 10.41% lower than the P4.69 billion the previous quarter.

Bingo operations accounted for P4.69 billion of the GGR, down from P5.85 billion the previous year, and P5.85 billion in the first quarter.

PAGCOR in 2023 announced plans to privatize self-operated casinos moving forward, and instead focus on a purely regulatory role. It expects to raise at least P60 billion to P80 billion from such plans.

Under its mandate, PAGCOR is required to regulate the gaming industry, generate revenues for the Philippine government's socio-civic and national development programs, and help promote the tourism industry.

It targets to divest from casino operations in the next five years, during which it also expects one integrated resort to open each year. —RF, GMA Integrated News