The Philippine Amusement and Gaming Corp. (Pagcor) reported an 85 percent drop in net income in the first nine months of the year, as weaker gaming revenues and higher remittances for government nation-building projects weighed on earnings.
The state-run gaming regulator said in a statement that net income fell to P2.17 billion in the January-to-September period.
Total revenues declined 23.41 percent year-on-year to P64.41 billion, reflecting softer earnings from gaming operations and related services.
Revenue from gaming operations, Pagcor’s main income source, fell 23.44 percent to P58.13 billion. Electronic gaming, the agency’s largest revenue contributor, fell more sharply by 37.23 percent to P27.63 billion.
Revenue from licensed casinos also weakened, falling 3.22 percent to P23.10 billion.
Pagcor’s Casino Filipino branches posted an 8 percent drop in revenue to P7.28 billion, while income from poker operations fell 4.6 percent to P105.86 million.
Earnings from related services declined 38.59 percent to P3.04 billion, while other income was nearly flat at P3.23 billion.
Meanwhile, a Supreme Court ruling requiring Pagcor to remit 5 percent of its gross revenues to the Philippine Sports Commission–nearly double the previous remittance levels to the sports agency–also weighed on earnings. Data showed Pagcor remitted P3.01 billion to the sports commission in the first nine months.
Overall, the gaming regulator spent P45.28 billion supporting the government’s nation-building efforts and meeting other statutory obligations.
‘We will continue to pursue responsible and sustainable operations while ensuring that the gaming industry adheres to regulatory standards,’ Pagcor chairman and CEO Alejandro Tengco said.
In August, Tengco told lawmakers that Pagcor may generate nearly P87 billion in income this year, following government efforts to curb online gambling addiction. He also said the war in the Middle East and the resulting inflation flare-up have weighed on gambling activity.
For 2027, the gaming regulator aims to generate P88.33 billion in income and would earmark about P63 billion for nation-building programs.