Philippines gaming regulator, PAGCOR, has reported total income from gaming operations of Php51.66 billion (equivalent to US$906 million) for the nine months ending on September 30, 2023. This figure demonstrates substantial growth, increasing by 31.9% year-on-year and slightly exceeding the government’s budgeted target for the period.
However, recent industry performance indicates a slowdown in the September quarter, with 3Q income amounting to Php15.45 billion (approximately US$271 million). This marks a 16.5 percent decline compared to the post-pandemic record of Php18.50 billion (around US$325 million) achieved in 2Q23. The Q3 result also falls short of the Php17.70 billion (equivalent to US$310 million) income declared by PAGCOR in Q1.
After settling taxes and mandated contributions, PAGCOR’s total comprehensive income for the initial nine months of the year stands at Php4.86 billion (approximately US$85.3 million). This figure represents an impressive 39.7 percent improvement over the same period in 2022 and surpasses the target by over 530%.
PAGCOR holds the responsibility of licensing and regulating all gaming activities throughout the Philippines and operates 43 casinos under the Casino Filipino brand, along with affiliated satellite locations.
Comparison with Quarter 3 year-on year
In comparing the year-on-year performance of PAGCOR between Q3 of 2022 and Q3 of 2023, there is a notable improvement.
In Q3 2022, the gross gaming revenue (GGR) was reported at PHP49.36 billion (equivalent to US$860.7 million), representing a 110.4 percent year-on-year gain from the previous year. However, in Q3 2023, the gaming regulator and casino operator continued to showcase its resilience, reporting a total income from gaming operations of PHP51.66 billion (around US$906 million), reflecting a substantial 31.9 percent increase compared to the same period in 2022.
Last year, private casino resorts, including those in Manila’s Entertainment City, generated 90.7 percent of the total income, amounting to PHP44.75 billion (approximately US$780 million), showing a 105 percent year-on-year growth from 2021. This year’s results indicate an ongoing positive trend, indicating a full recovery of the Philippines’ gaming industry.
While there was a slight decline in the Q3 2023 income compared to the record-breaking Q2 2023 results, the overall year-on-year performance for Q3 demonstrates a significant improvement, demonstrating the resilience of PAGCOR and the gaming industry in the Philippines.
For the full details of the report, PAGCOR Q3 2023 Financial Results are available via the link.
Path to strengthen gaming industry
In recent developments PAGCOR announce on a transformation of its business model, transitioning from its dual role as both operator and regulator to become a purely regulatory body.
This strategic shift, as outlined by PAGCOR’s Chairman and CEO Alejandro H. Tengco, is aimed at creating a level playing field and ensuring sustainable growth for all participants in the gaming industry. PAGCOR’s commitment to this transition is exemplified by plans to modernize its corporate structure, enhance casino operations, and introduce new regulations.
The agency’s careful approach to managing this transformation includes efforts to mitigate potential personnel displacement and foster trust among its employees.
As PAGCOR moves forward, its journey towards becoming the gold standard in the Asian gaming scene is set to reshape the landscape of the gaming industry in the Philippines, promoting transparency and fostering competitiveness.
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