Online gambling drives Pagcor to record revenue billion in 2024

In an unprecedented achievement for the Philippine Amusement and Gaming Corporation (Pagcor), the organization reported a remarkable revenue of PHP112 billion (£1.54 billion/€1.84 billion/$1.92 billion) for the fiscal year 2024, largely fueled by significant advancements in the online gambling sector.

In its financial disclosure dated January 30, which detailed earnings for the year ending December 31, Pagcor announced a staggering 41% increase from the previous record of PHP79 billion in 2023. This milestone marks only the second instance in which Pagcor’s revenue has surpassed the PHP100 billion threshold, following the previous achievement of PHP104.12 billion in 2018.

Online gambling, referred to locally as electronic gaming or eGaming, emerged as the cornerstone of this record revenue, accounting for half of the total. Revenue from electronic games and eBingo surged by an astonishing 116.0% year-on-year, reaching PHP46.79 billion. This surge has positioned online gambling as the predominant revenue stream for Pagcor, eclipsing the contributions from licensed land-based casinos.

Conversely, revenue from licensed casinos remained relatively stable, generating PHP33.07 billion, which represented 33.9% of Pagcor’s total revenue. However, Casino Filipino reported a notable decline of 16.2%, bringing in PHP12.67 billion, and offshore gaming revenues also dropped by 5.1%, totaling PHP2.99 billion.

It is worth noting that Pagcor ceased operations of the Philippine Offshore Gaming Operators (POGOs) in December following directives from the nation’s president.

Overall, the earnings from gaming operations and license fees accounted for PHP97.52 billion of the total revenue, while ancillary income sources such as business income and various service fees contributed an additional PHP14.18 billion.

Net Operating Income Reaches All-Time High

In addition to record revenue, Pagcor achieved an unprecedented high in net operating income for 2024, reaching PHP84.97 billion, an impressive increase of 50.7% compared to the previous year. After accounting for the PHP68.21 billion allocated to nation-building contributions, the net income stood at PHP16.77 billion, marking a phenomenal growth of 146.3% year-on-year, thereby setting another new record for Pagcor.

Of the contributions made, PHP46.32 billion was designated for government shares. Furthermore, PHP12.37 billion was allocated to socio-civic projects, and PHP4.87 billion was earmarked for franchise tax obligations. Other payments included PHP1.09 billion in corporate income tax and PHP2.31 billion directed to the Philippine Sports Commission.

“We take immense pride in announcing that our 2024 financial performance is the most substantial in the history of Pagcor,” stated Pagcor Chairman and CEO Alejandro Tengco. “We extend our gratitude to our employees and stakeholders whose dedication has made this milestone achievable.”

“The revenues generated in 2024 have enabled us to enhance support for various government initiatives and nation-building efforts.”

Potential for Online Growth Following Rate Reductions

In a strategic move announced earlier this month, Pagcor revealed a reduction in its fee structures for online gambling operations, decreasing the fee from 35% to 30% in an ongoing effort to eradicate illegal online gambling activities within the nation.

This revised fee rate, effective January 1, marks the second reduction in less than a year. The previous cut to a 35% fee was implemented in April 2023, aimed at attracting more legitimate operators to the sector.

Pagcor’s assessment of fees is grounded in a fixed percentage of the gross gaming revenue (GGR) of its licensed operators. Prior to these reductions initiated in 2023, the corporation’s fee collection had exceeded 50%, which presented a substantial barrier to entry for new operators.

Tengco highlighted that the gradual decrease in fee rates has successfully spurred growth in the number of licensed operators, with the total number of accredited gaming service providers increasing threefold, from 49 in 2023 to 174 in 2024.

“The sustained expansion of the eGames sector has been the primary catalyst behind Pagcor’s record-breaking performance,” Tengco remarked in the results report. “This trend underscores the rising acceptance of digital gaming platforms and the transformative impact that technology continues to exert on the industry.”