PAGCOR first-half gaming revenue up by 8.4%
STATE-RUN gaming firm Philippine Amusement and Gaming Corp. (PAGCOR) said its gaming revenue rose 8.4% year on year in the first half, as a new online-gaming revenue stream started to be reflected in its books.
PAGCOR, the government’s thirdlargest revenue- generating agency, said it generated P28.27 billion in gross gaming revenue in the first six months of the year, up 8.38% from a year earlier.
Lawyer Jose S. Tria, Jr., PAGCOR special assistant to the chairman, said PAGCOR Chairman Andrea D. Domingo issued a directive to lower operating expenses.
“You can relate ( the results) to the order of our chairman to lower the operating expense of our casinos. Before, their opex (operating expense) was really high. Some exceeded 47% (of revenue), some are at 50%. But she wants it lowered to about 36%. That is the most acceptable for her,” Mr. Tria told BusinessWorld in a phone interview yesterday.
“So we have a lot of negotiations of use agreements to lower the expense of PAGCOR, as well as the tightening of guard of the branch managers, the casino’s incomes really grew,” he added.
The gaming regulator’s operating expenses in the first half came in at P6.76 billion, down 3.97% from a year earlier.
Mr. Tria also attributed the growth to new revenue generated by the Philippine Offshore Gaming Operators ( POGO), which came under government supervision in December.
“Also the POGO contributed there. Last year, there was no online gaming. So now, its income is coming in,” said Mr. Tria, who heads the offshore gaming group.
Total fees and taxes collected under POGO stood at P2.98 billion as of endJune, which represents about 10.54% of the overall revenue, according to the PAGCOR off icial. Currently there are 42 licensed offshore gaming operators.
He described the impact of the Resorts World Manila attack as small. Before the first half came to a close, PAGCOR suspended the gaming license of one of the largest integrated resorts in the country for 20 days ending on July 29, due to security shortcomings that allegedly contributed to the death of 38 people following an attack from a lone gunman on June 2.
Asked what impact this had on PAGCOR’s results for the period, Mr. Tria said: “Not much.”
“What happened when Resorts World closed, the incomes of other [integrated resorts] increased. The players just transferred casinos. Because they still want to play,” he said.
“So they just transferred casinos, and the effect is not that big. Although maybe there’s a slight effect, but its kind of insignificant,” he added.
Ms. Domingo said earlier that PAGCOR expects about P155-160 billion in gross gaming revenue this year, about 30% more than its 2016 target, and 4% above its actual P149-billion revenue for that year.
PAGCOR generates income from its casino operations and takes a cut from private casinos. It remits half of its overall take to the national government. It has so far sent to the Bureau of the Treasury some P13.4 billion in the first half. —