PAGCOR Financial Report For Q3 And Changes In Revenue

Article by : Helen Dec 9, 2020

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Diverse gambling markets worldwide have been going through a tough time since the Coronavirus pandemic has started, and the one in the Philippines can’t boast with revenues it had last year. However, the same can’t be said about licensed online gambling operations as far as the state doesn’t disclose information.

Philippine Amusement and Gaming Corporation (PAGCOR) has recently released Philippine Gaming Industry Data for the third quarter. As the figures show, gross revenue generated by the local gaming industry’s gross revenue is $367m (P17.66b), while the same period of 2019 brought P65.4b. Total gross gaming revenue generated by the Bingo operations and Electronic games is P1.7b, and the Table Games, Slot Machines, Junket, and In-house Bingo generated P914m only.

Anyway, these figures are much higher than those generated in the second quarter when land-based gambling properties didn’t operate because of the Covid-19 pandemic. Just for comparison, the sector of Table Games, Slot Machines, Bingo Operations, and Electronic Games generated P126m while Total Industry Gross Gaming Revenues were P2.4b.

Statistics presented by PAGCOR has been miserly this year, and the report for the third quarter confirms this once again. If you compare the Q3 report with two previous reports in 2020, you will note that the regulator didn’t show year-to-date totals. The single column of figures received during Q3 is available here. Manila Entertainment City is a gaming and entertainment complex with the PAGCOR license, and its casinos’ revenues fell from P42.8b in the third quarter of 2019 to P13b in Q3 2020. There is not represented in the Q3 report how much revenue was received from tables compared to slots and what was generated by junket versus direct play.

Casino Filipino operations are the property of PAGCOR, and they reported that gross gaming revenue received in Q3 2020 is 90% less than it was in Q3 2019. So, the total revenue was P914.7m where tables brought P201m, slots accounted for P421m, and junket-based slots and tables all together accounted for P292m. There is also one more sector that includes e-games and bingo, and compared to 2019, revenues received from this segment decreased by 72%. The third-quarter report doesn’t represent figures of the PAGCOR category, which combines revenues received from Philippine Offshore Gaming Operators. However, in the third quarter of 2019, this category brought to PAGCOR around P1.33b.

Because of the pandemic, casino operators were forced to close their properties, so loads of workers returned home, meaning it was one of the reasons why some POGOs remain closed.

Another reason is related to the fact that the government will impose tougher regulatory compliance on operators. Moreover, there was imposed a 5% tax on gambling turnover; that is why some Philippine Offshore Gaming Operators decided to leave this cooperation. It was also prohibited for PAGOs to serve local players, but the government allowed online cockfighting known as e-sabong, which is extremely popular among gamblers in the Philippines. It helps POGOs to make up some of the losses they face in 2020.

In November, Manila casinos, including City of Dreams and Okada Manila, submitted applications for offering online gambling, but only Solaire Resort&Casino’s is currently allowed to accept bets online. However, it is approved under strict conditions, and the system is being tested by the Gaming Licensing and Development Department. Earlier this month, there was a typhoon in the Bicol region, and PAGCOR delivered food packs to Camarines and Albay. It will also allocate $41.5m to building evacuation centers.