State-run Philippine Amusement and Gaming Corp. (Pagcor) has reported sustained revenue growth in the first half of the year, indicating a strong momentum that positions it to surpass pre-pandemic levels by the end of 2023.

Alejandro Tengco, Pagcor chairman and chief executive officer, said the agency’s revenue posted an upswing of 35.6 percent from January to June, 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 in a statement late Wednesday, July 19.

“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.

Tengco attributed the higher income from gaming operations to the rise in the total industry gross gaming revenue (GGR).

According to Pagcor, the industry-wide GGR reached P136.37 billion by the end of June, a substantial increase of 48.7 percent compared to the P91.72 billion recorded a year ago.

“With the finetuning of our regulatory policies, we believe that the Philippines will become a more attractive gaming and entertainment hub both for investors and guests,” Tengco said.

Meanwhile, Tengco said that Pagcor is a significant contributor to the country’s economy and does not rely on government funding or assistance.

In fact, Tengco cited that Pagcor contributes nearly 70 percent of its revenues directly to the government, both through direct remittances to the Bureau of the Treasury and through other mandated contributions.

Pagcor's contribution to the development of the nation has increased by 48 percent from January to June, reaching P22.62 billion compared to P15.23 billion during the same period last year.

Of that amount, P16.2 billion was directly allocated to the Treasury bureau as the government's 50 percent share.

Additionally, half of Pagcor’s remittances to the state coffers, amounting to P8 billion, will be transferred to the Philippine Health Insurance Corp. to support the universal healthcare benefits.

In addition, Pagcor designated P3.61 billion for various socio-civic programs initiated by the government.

Furthermore, a sum of P1.7 billion was remitted to the Bureau of Internal Revenue as a five percent franchise tax. The Board of Claims, under the Department of Justice, also received P19.92 million from Pagcor.

The state-run gaming and regulatory firm also transferred P810.47 million to the Philippine Sports Commission (PSC).

Moreover, an extra amount of P17.97 million was disbursed to the PSC as sports incentives and benefits for national athletes and coaches who achieved success in international competitions.

Additionally, cities hosting Pagcor’s Casino Filipino branches were allocated P225.86 million.