July 27, 2017

How much does Philippines’ Online Gambling Contribute Towards PAGCOR’s Revenues?

The Philippine Amusement and Gaming Corporation (PAGCOR) is a government-owned agency established in Metro Manila, Philippines, for the operation of floating casinos and slot clubs in major cities across the country. The agency also supervises and regulates private casinos, bingo parlors, and e-gaming cafes in the region. PAGCOR, as a corporation, is registered under the Office of the President of the Philippines.

Ever since it was established, PAGCOR has been establishing gaming pools and conducting casino games across the country. PAGCOR is expecting an amount of P6 billion as tax revenue from online gaming parlors. Moreover, the corporation is considering a move to limit the number of operators to 50 owing to a probable oversupply of players in the market. This also shows that online gaming has immense potential, with gamblers operating right from their home.

The casino operators and gaming regulators in the Philippines reported a one-quarter increase in profits in the beginning of 2017. But figures released by PAGCR reveal its revenue from online gambling increasing by 8.4 percent every year to P28.3 billion in the half year ending June 30. However, PAGCOR’s profit rose by 24.9 percent to P3 billion. PAGCOR’s contribution to the government treasury amounted to P13.4 billion.

The year-over-year increase in revenue was slower in the second quarter due to the temporary shutdown of gaming operations after the gun attack at the Resorts World Manila in June. However, the agency is now considering a complete transition to a regulatory role. But the casinos reported a revenue of P5.2 billion and slot machines a revenue of P6.1 billion. Income from electronic bingo was P4.4 billion but its licensed private casinos added a revenue of less than P9.5 billion.

The Philippine Offshore Gaming Operators (POGO) reported income of less than P1.1 billion in the first quarter. PAGCOR hopes that the POGO program would generate an income of $120 million eventually. The tax rate on revenues from RNG games remains pegged at 2% but operators would have to pay a sum of $150K as Monthly Minimum Guarantee Fee (MGF).

The POGO program was initiated as a part of the government’s efforts to foist tighter supervision over operations, which were overlooked by authorities in the Philippines’ special economic zones. PAGCOR would also be deploying monitoring teams to ensure that POGO licensees comply with regulatory requirements.

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