The state-run gambling regulator, Philippine Amusement and gambling Corp. (Pagcor), has released its financial results for the first half of 2024. In comparison to the same period last year, Pagcor’s total expenses increased by 26.8 percent to PHP15.64 billion (US$266.7 million), according to a recent statement that was released on their website.
Personnel services accounted for the majority of Pagcor’s costs, totaling PHP9.28 billion. This indicates a yearly growth of 28.1 percent. The cost of maintenance and operations also increased significantly, reaching PHP5.39 billion (52.5%). These increases in costs are consistent with Pagcor’s strong revenue growth.
In the first half of 2024, Pagcor’s gross revenues soared to PHP51.76 billion, a remarkable 42.9 percent higher than the previous year. This revenue growth translated into a net income of nearly PHP6.57 billion, reflecting a dramatic 121.5 percent increase from the prior year. The gaming sector was the primary contributor, generating PHP45.39 billion of the total revenue. Notably, 45.5 percent of this amount, or PHP20.66 billion, came from electronically-delivered gaming options, including “e-Bingo, e-Games, and bingo grantees.”
Impact of Regulatory Changes
Commercial casinos licensed by Pagcor contributed PHP16.06 billion, accounting for about 35.4 percent of the total revenue for the first half of 2024. Additionally, the Philippine gaming sector, encompassing both casino and non-casino operations, reported a gross gaming revenue (GGR) of PHP194.74 billion. This represents a 19.21 percent increase compared to the same period last year.
On July 22, President Ferdinand Marcos Jr announced that Philippine Offshore Gaming Operators (POGOs), now referred to as Internet Gaming Licensees (IGLs), must cease operations in the country by the end of the year. Despite this significant regulatory shift, Pagcor remains optimistic about the industry’s resilience. In recent remarks to GGRAsia, Pagcor indicated that the ban on offshore gaming operators would have “a minimal impact on the Philippine gaming industry since the segment accounts for less than 5 percent of [aggregate] GGR.”
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