Pandemic Causes Online Gaming Revenue to Drop 50%

PAGCOR announced that online gaming revenues fell 50% after the pandemic led to restrictions on offshore gaming operations.

Jose Tria, PAGCOR assistant vice president for offshore gaming licensing, said online gaming revenues halved after income of the Philippine Offshore Gaming Operators (POGO) and their service operators fell up to 80% during the pandemic.

Tria added, ₱600 million in monthly regulatory fees were cut by “almost half” as only 32 out of 60 POGOs in the Philippines were allowed to operate at 30% capacity.

The Bureau of Internal Revenue (BIR) cleared 111 to operate out of 218 accredited POGO service providers.

Tria said, “Our monthly regulatory fees of around P600-million pre-COVID is now down by almost half. This should have been lower if not for the Minimum Guaranteed Fees which allows PAGCOR to impose higher regulatory fees than two percent of POGOs’ GGR [Gross Gaming Revenues] following the ‘whichever is higher formula’,”

PAGCOR allowed POGOs to continue operations only after clearing conditions such as completing all pending government tax liabilities.

At least 5 POGO licenses were canceled, 5 were suspended while 42 service providers have filed for cancellation of their accreditation following the stricter quarantine and tax rules, Tria said.