PAGCOR Reveals a Loss of US$48 Million in its First Half
The Reason behind the Huge loss
The regulator found that its revenue from all gaming operators reduced steadily during this second quarter. The reason behind the decline is due to the several casinos in the country, which remained closed for three to four months from March due to the effect of COVID-19 pandemic.
During the first three months of 2020 that is Q1, the regulator reported its net income of US$15.8 million, but during Q2, it had a loss of US$48.4 million. Its overall revenue for the first six months of 2020 was declined by 49.5% as compared to 2019. In the first quarter of 2020, the total income generated was US$350.4 million and during the second quarter, it was found to be just US$24.8 million.
Profits Declines to 50% During Q1
PAGCOR reported a 5.7% decline in earnings from gaming operations which is about PHP.22 billion during the first quarter of 2020. During the first three months, profit fell by 49.9% to Php777.4 million. It was targeting to have PHP.42 billion during this period. The regulator paid 50% to the government share, PHP.4 billion in CSR and 5% franchise tax.
Taxes and Contributions
According to the gaming regulator, it paid a net of PHP9.68 billion in gaming contributions and taxes from that quarterly gaming revenue. The amount of nearly PH 8.73 billion was deducted and transferred to the Bureau of the Treasury. Moreover, according to Philippine law, PAGCOR is required to pay at least half of its annual gross income to the national government authority.
The regulator also said that its earnings from licensed casinos were net US$138.4 million and because of the closure, no income was generated during the second quarter. On the other hand, earnings from POGO operations was US$59.4 million and out of which US$22.6 million was Q2 income.
The regulator reported declines in the provision of various subsidies to donations and corporate social responsibility projects which were made during the first half of 2020.
In the latest press release, the gaming regulator stated that they are the supervisor of publicly owned casinos, who regulates the gaming of the entire casino industry. It covers all privately established venues and the fees gathered from these licensed casinos were around PHP 6.80 billion in the first two quarters. It went down PHP13.67 billion this year. Moreover, the earnings gathered from offshore gaming operators during the first half of 2019.
The president of the Philippines, Rodrigo Duterte imposed community quarantine around the island of Luzon. Since mid of March, casinos in the Metro Manila region along with the large scale sites of Resorts like World Manila, City of Dreams Manila, Solaire Resort and Casino were closed. The quarantine was extended to July 31.
The Philippine Amusement and Gaming Corporation is a government-controlled and owned corporation. Introduced in 1976, PAGCOR mandated the development and regulation of the country’s gaming industry while supporting the country through social responsibility programs. The organization is one of the three significant contributors to revenue in the Philippines.
It is renowned for assisting communities and supervising operations in the casino gambling communities. It recently operates its own VIP slot rooms and casinos while overseeing operations of e-game cafés, casinos and bingo halls.
It also regulates services in terms of sports betting for Mega Sports World (MSW). It aims to make the country as a top entertainment and gaming destination across Asia by 2020.
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