Gaming revenue is some way clear of the PHP163.36bn reported in H1 of the previous year, according to the Philippine Amusement and Gaming Corporation (Pagcor). Pagcor puts this down partially to reforms and strengthened regulations being implemented under the new Philippines administration.
Breaking down the performance in H1, land-based casinos remain the primary source of revenue at PHP99.16bn. In contrast the Casino Filipino properties, operated by Pagcor, reported a 11.6% decline in revenue to PHP8.89bn. These properties are likely to be put under private ownership, with Pagcor saying last year it plans to privatise operations by 2025.
This forms part of its plans to move to a purely regulatory role, to “level the playing field” for licensees and to encourage new entrants and investment in the country.
POGO GGR up 208.4% in H1
Philippine Offshore Gaming Operators (POGOs) were “phenomenal” performers with online GGR reaching PHP63.01bn – more than triple the PHP20.43bn posted in H1 2023 – Pagcor said.
Online may be the standout channel, but the sector continues to be dogged by controversy. Senator Joel Villanueva continues to push his 2022 legislation to ban POGOs, in spite of previous attempts to limit or outlaw the sector failing.
Pagcor is already taking action to channel illegal activity into the regulated market. In March chairman and CEO Alejandro Tengco announced it would reduce fees for operators, lowering rates by 5% on average to encourage more businesses to apply for licences.
Tengco: Pagcor on track for PHP100bn in revenue in 2024
Revenue for Pagcor, comprising income from gaming operations, service and business income (such as licence fees) hit PHP51.76bn, up 42.9% from H1 last year.
Of this, PHP45.39bn came from gaming operations across the Philippines. Online gaming made up almost half of that figure, at PHP20.66bn, making them the biggest single contributor.
Integrated resorts and licensed casinos generated PHP16.06bn in revenue for Pagcor, or 35.4% of the H1 total. Meanwhile, Pagcor-operated casinos posted PHP6.93bn for a 15.3% total revenue contribution.
This puts Pagcor on track to “reach or breach” PHP100bn in annual gross revenue for 2024, chairman and CEO Tengco said.
“Given the phenomenal revenue increase in the igaming sector, and with more players and investors signifying their intent to enter the Philippines market, we are confident that the year 2024 will be truly a banner year for Pagcor,” he said.
Thanks to the strong growth in revenue, net income after operating costs and expenses was up 121.5% to PHP6.56bn in H1. This follows a quarterly record of PHP25.0bn in the first quarter.
“Pagcor’s robust net income growth translates of course to a larger contribution to nation-building,” Tengco said. “We were able to remit PHP31.8bn to the treasury in the first six months. This is compared to PHP22.6bn in the same period last year.”