The Philippine Amusement and Gaming Corp. (Pagcor) remitted P18.84 billion in revenue to the state coffers, a 43 percent increase compared to the previous year.
However, the government's share in Pagcor's income from January to July is still six percent lower than its pre-pandemic remittance.
Pagcor is required by law to share 50 percent of its net revenue with the national government.
In July alone, Pagcor remitted P2.83 billion to the Treasury, a 26 percent increase from the previous year.
Alejandro Tengco, Pagcor Chairman and CEO, earlier stated that the company aims to surpass pre-pandemic levels by the end of 2023.
Pagcor's revenue for January to June 2023 increased by 35.6 percent, amounting to P36.21 billion.
Despite the growth, the end-June income fell short by 6.7 percent compared to pre-pandemic levels recorded in 2019.
Pagcor expects total revenues to reach P272.74 billion in 2023.
Tengco expressed optimism about sustaining the gaming industry's growth and attracting more investors to the Philippines.
Pagcor's remittance nears pre-pandemic levels
At a glance
The government's portion of the income generated by the Philippine Amusement and Gaming Corp. (Pagcor) increased by almost half in the first seven months of the year but remained below pre-pandemic levels.
According to the Bureau of the Treasury's report, the government's gaming regulator and operator contributed P18.84 billion in revenue to state coffers, a 43 percent increase compared to P13.12 billion in the previous year.
Despite this growth, the government's share of Pagcor's income is still six percent lower than its pre-pandemic remittance of P20.13 billion from January to July 2019.
Under the law, Pagcor is compelled to allocate 50 percent of its net revenue to the national government.
Pagcor, the government's third largest revenue-generating agency, sent P2.83 billion to the Treasury in July alone, a 26 percent increase compared to the P2.27 billion contributed in the same month last year.
In July, Alejandro Tengco, Pagcor chairman and chief executive officer, said the company was on track to surpass pre-pandemic levels by the end of 2023.
Pagcor’s revenue posted an upswing of 35.6 percent from January to June 2023, hitting P36.21 billion compared to P26.7 billion in the same period last year.
However, Tengco admitted that despite the strong growth, the end-June income fell short by 6.7 percent compared to the pre-pandemic output of P38.81 billion recorded in 2019.
Despite the challenges, Tengco said Pagcor’s consistent upward trend provides a strong foundation for optimism, as this increases their likelihood of achieving or even surpassing the pre-pandemic income levels by the end of 2023.
“Pagcor will certainly ride on the tide of our country’s economic growth,” Tengco said.
“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.
Between January and June, Pagcor's revenue was primarily driven by income sourced from gaming operations and regulatory fees collected from licensees, which totaled P34.12 billion.
Notably, there was a 38 percent increase in income generated from gaming operations and regulatory fees from licensees, rising from P24.72 billion recorded in the previous year.
For 2023, Pagcor expects total revenues to reach P272.74 billion.