E-Games Propel PAGCOR Gaming Revenues Up 32% in Q2

The Philippine Amusement and Gaming Corp. (PAGCOR) reported a 32% increase in gross gaming revenues (GGR) for the second quarter, significantly driven by the booming electronic games (e-games) sector, which saw its revenues skyrocket to a new record high.

PAGCOR’s GGR for the quarter reached P89.23 billion, a notable rise from P67.43 billion in the same period last year, and a 9.21% increase from P81.70 billion in the first quarter of this year.

The e-games sector contributed P30.85 billion to the GGR, marking an astonishing 525% increase from the P4.93 billion recorded 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,” stated PAGCOR Chairman and CEO Alejandro Tengco.

In his third State of the Nation Address (SONA), President Ferdinand “Bongbong” Marcos Jr. announced the ban on POGOs, directing PAGCOR to wind down operations by year-end.

Economic Impact of POGO Ban

A cost-benefit analysis by the Department of Finance (DOF) revealed that the POGO industry had a net cost of P99.52 billion to the Philippine economy as of 2021. This includes direct economic costs totaling P84.87 billion, stemming from reduced foreign investments due to crime and corruption perception, decreased inbound tourism revenues, and additional costs for law enforcement and immigration.

POGOs contributed P166.49 billion in total benefits, including P40.65 billion in direct benefits, which encompassed income from housing space rentals, withholding taxes, gaming taxes, and revenues to PAGCOR.

Other Gaming Revenues

Licensed casinos reported revenues of P49.48 billion in the second quarter, down from P51.70 billion in the same period last year, and a 10.41% decrease from the previous quarter’s P55.22 billion.

PAGCOR-operated casinos under the Casino Filipino brand generated P4.20 billion, a 14.80% decline from P4.93 billion the previous year, and 10.41% lower than the first quarter’s P4.69 billion.

Bingo operations contributed P4.69 billion to the GGR, down from P5.85 billion the previous year and P5.85 billion in the first quarter.

Privatization Plans

In 2023, PAGCOR announced plans to privatize its self-operated casinos to focus on a regulatory role, aiming to raise between P60 billion to P80 billion through these efforts. Over the next five years, PAGCOR plans to divest from casino operations while expecting one integrated resort to open each year.

PAGCOR’s mandate includes regulating the gaming industry, generating revenues for socio-civic and national development programs, and promoting tourism in the Philippines.