The Philippines Entertainment and Gaming Company (Pagcor) said that despite restrictions imposed on online gambling, GROSS gaming revenue (GGR) is expected to reach its $7 billion target in 2025.
“These numbers confirm that the Philippines’ position is one of Asia’s fastest growing and most important gaming markets,” said Alejandro H. Tengco, chairman and CEO of Pagcor.
Pagcor said in a statement Tuesday that it booked a $3.8 billion GGR in the first half to beat the pace of its full-year target.
Mr. Tengco took the rapid rise of video games as a driving force for growth, but added: “Overrising must develop to ensure integrity and player protection.”
The online gambling industry has been subject to strict public scrutiny, allowing the government to weigh options such as a total ban or higher taxes.
Finance Minister Ralph G. Recto said last week that the government is proposing online gaming taxes, as well as policy options to restrict access to gambling platforms.
Pagcor said it generated 41 billion pesos from video games between January and July and P28 billion from other online gambling platforms.
Pagcor has addressed concerns about the industry, including banning betting with credit cards or cryptocurrencies.
Mr Tengco reiterated his position on getting rid of the regulator’s role as a casino operator.
“The dual role of Pagcor has achieved its purpose, but as the industry matures, it’s clear… the referee can’t be a player in the same field, either,” he said.
Pagcor notes that such decoupling will require approval from the Governance Committee (GCG) of the Government-owned and controlled companies (GCG), which is now reviewing the restructuring.
GCG said the results of the study will be presented to GCG within one year.
It added that once approved, the study will be submitted to the president’s office.
Mr Tengco said Pagcor-run Casino Philippines employees will be protected by redeployment or recruitment of privatized operators. Otherwise, he promises that once the Philippine casino is privatized, he promises competitive retirement benefits.
He pointed out that a “serious problem” for Philippine casinos, with expected losses of more than 5 billion pesos. – Aubrey Rose A. Inosante
