The Philippine Amusement and Gaming Corporation (PAGCOR) saw its earnings as the state-run overseer for the gaming industry jump to an unexpected level in 2022. The hefty increase in revenue was also an effect of how the more relaxed policies on restrictions were implemented in the last quarter of last year. Reopening the economy not only spelled a big difference in PAGCOR’s coverage but also for other industries in various sectors of the economy.
The latest data from PAGCOR has shown that its net income surged by over 2,000% and peaked at an unprecedented PHP 4.45 billion in 2022. Comparing this to 2021’s data, PAGCOR just managed to reach PHP 203.57 million for the whole year.
This is indeed a huge leap from its initial target of PHP 440.44 million for 2022 which was set by the Department of Budget and Management. PAGCOR figures show that revenues went on a faster pace by 66% to PHP58.96 billion from the 2021 level of PHP 35.49 billion.
It is important to note that a considerable share of said revenue was coming from gaming operations which went up to nearly 70% in 2022.
The upswing in revenue occurred when the government allowed casinos and offshore gaming operations to return to their operations at much bigger capacities. The less restrictive COVID policies encouraged more movement and accessibility for everyone. This was conducted in a very timely manner since the number of COVID cases in the country continually dropped to a manageable level.
Alejandro Tengco, PAGCOR’s Chairman and CEO, acknowledged that these changes in COVID restrictions were a big help to the gaming industry. He foresees that the sector will continue the momentum in its growth as the year marches on.
“We are confident that the Philippine gaming sector will be able to fully recover, or even surpass its pre-pandemic earnings soon,” Tengco said.
Tengco was confident in saying that this remarkable trend of revenue growth will continue since this started from 2022 until year-end.
He also attributed last year’s performance to the opening of Phillippine borders to both local and foreign tourists. This change brought back the much-needed break for the tourism industry as well and has also seen a positive effect on sectors in entertainment and hospitality.
“Since the lockdowns were eased in the country and gaming venues reopened, customer confidence slowly returned and the attendance in our owned casinos slowly improved,” Tengco said.
Despite PAGCOR also having increased its tab on expenses by 61.4% totaling PHP 22.59 billion last year, this was also an investment moving forward for its personnel services, maintenance and other operating expenses. It also exceeded its target of PHP22.42 billion. In 2021, these expenses only totaled PHP 14 billion.
PAGCOR’s contribution to nation-building also impressively increased by 51% to PHP34.67 billion. The bulk of this at PHP26.15 billion went to the Bureau of Treasury while PHP3.63 billion was allocated for the socio-civic programs under the helm of the government.
Meanwhile, a total of PHP 2.75 billion was remitted to the Bureau of Internal Revenue as part of its franchise tax and PHP1.3 billion was reserved for the Philippine Sports Commission.
PAGCOR’s chain of casinos which are located in several cities around the country also benefitted from the commendable performance of PAGCOR. Each branch will also be receiving its share in the PHP451.72 million while the Board of Claims under the Department of Justice got PHP33.76 million.
PAGCOR is mandated by law to provide portions of its earnings to various government agencies.
It is great news that PAGCOR was able to exceed expectations on its revenue. Hopefully, this wave of positive growth will continue as 2023 marches ahead with even more relaxed policies on restrictions due to COVID-19. Would PAGCOR reach all-time highs again at year-end? Any thoughts? Just comment below. We always look forward to hearing from you, folks! Stay safe and cheers!