STATE-OWNED casino operator Philippine Amusement and Gaming Corp. (Pagcor) is eyeing to turn over P37.65 billion earnings to the government next year.
At a hearing of the House Committee on Appropriations, Sharon Quintanilla, Pagcor assistant vice president, said P37.65 billion of the Pagcor’s projected income of P55.89 billion for 2023 will go to the national government.
“For 2023, Pagcor aims to generate a total of P55.89-billion income and allocated P37.65 billion to nation-building based on the proposed corporate operating budget for submission to DBM [Department of Budget and Management],” she said.
The amount is higher than its expected income contribution of P35.5 billion this year.
Pagcor said the promising gaming outlook in the country was fueled by the easing of community quarantine and travel restrictions, increased vaccination rate among gaming personnel and guests, and implementation of strict health protocols in all Pagcor-operated and regulated gaming venues.
Gaming taxes paid and contributions made by Pagcor include a 5-percent franchise tax, a 50-percent government share and the dividends it gave to the Dangerous Drug Board in line with Republic Act (RA) 9165, or the Comprehensive Dangerous Drugs Act.
Pagcor also earns from shares, license fees, offshore gaming operations, rental and entertainment, apart from its casinos.
Quintanilla said Pagcor is expected to generate P54 billion by the end of 2022.
“Total income generated from January to June 2022 [is already] P26.7 billion,” said Quintanilla, adding “the contribution allocation to nation building from January to June is already at P15.2 billion.”
After more than two years into the pandemic, Pagcor said it has shown signs of recovery with its 68.11 percent year-on-year revenue increase for the first half of 2022.
The state-run gaming firm posted P26.70 billion in total income from January to June, a significant leap from the P15.88-billion revenues during the same period last year.
Such amount was also 9.39 percent higher than the agency’s revenue target of P24.40 billion for the first six months of this year.
Meanwhile, Pagcor’s net income (after tax) also grew by 2,630.51 percent or P2.15 billion compared to the P79.07-million net income in the first semester of 2021.
Because of improved gaming revenues in the first half of the year, Pagcor’s contributions to nation-building significantly increased by 62.69 percent—from P13.05 billion in the first six months of 2021 to P21.23 billion this year.
Of the P21.23-billion contributions to nation building, the lion’s share of P11.71 billion went to the National Treasury as 50-percent government share; P6 billion also went to the national coffers as cash dividends (for dividend year 2021); while P1.23 billion went to the Bureau of Internal Revenue as franchise tax.
This year, Pagcor has also remitted significant contributions to the Philippine Sports Commission (P587.18 million); Dangerous Drugs Board (P30 million); Board of Claims under the Department of Justice (P22.70 million); and National Government Agencies (P52.39 million). Likewise, the agency allocated P1.23 billion to fund the government’s sociocivic programs as well as Pagcor’s own corporate social responsibility projects.