Pagcor revenue up in Q1 amid ongoing online gambling growth

Online Gambling Revenue Surges: PHP 14.32 Billion Represents 56% of Q1 Earnings

The Philippine Amusement and Gaming Corporation (Pagcor) has reported a significant 11.2% year-on-year revenue increase for Q1 2025, primarily driven by robust growth in the online gambling sector.

Total revenue for the first quarter reached PHP 28.07 billion ($502.8 million), a notable rise from the PHP 25.24 billion recorded in the same period last year. This growth underscores the expanding influence of online gambling in the Philippine gaming landscape.

Gaming operations contributed PHP 25.52 billion to the overall revenue, marking a 14.5% increase compared to Q1 2024. As has been the trend in recent years, online gambling emerged as the primary catalyst for this upward trajectory.

Specifically, online gambling generated PHP 14.32 billion, accounting for a staggering 56% of the total revenue for the quarter. In contrast, licensed land-based casinos reported PHP 8.32 billion, representing a 32.6% share. The remaining PHP 2.88 billion stemmed from Pagcor-operated casinos, comprising 11.3% of the quarterly earnings.

Net Income Surpasses PHP 4.22 Billion Amid Cost Reductions

Alongside revenue growth, Pagcor has achieved favorable reductions in operational expenditures. The agency’s strategic emphasis on “financial discipline” resulted in a 15.5% decrease in costs, bringing them down to PHP 6.21 billion.

This reduction in expenses, combined with increased revenue, enabled Pagcor to record a net income of PHP 4.22 billion for Q1, surpassing last year’s figures by 23%.

Pagcor Chair and CEO Alejandro Tengco commented on the impressive results: “This performance reflects our dedication to responsible governance and fiscal discipline. The gains we’ve made in the first quarter will empower us to contribute even more robustly to nation-building as we progress through the year.”

Moreover, Pagcor’s overall contributions to nation-building during the quarter exceeded PHP 18.9 billion, marking a year-on-year increase of 21.5%.

Sustained Growth Amid the Exit of POGOs

Q1 2025 marks the first full reporting period following the cessation of Philippine Offshore Gaming Operations (POGOs), which halted in December as per presidential directives.

Revenue from offshore gaming was recorded at PHP 2.99 billion for the entire year of 2024. In response to the evolving landscape, Pagcor announced a further reduction in online gambling fees, lowering the rate from 35% to 30%. This move is part of a broader strategy to curb illegal online gaming operations in the Philippines.

This lower rate, effective January 1, marks the second reduction within twelve months; Pagcor had previously cut its gaming rates to 35% last April.

Tengco noted that this gradual decrease in fees has attracted a substantial influx of new licensees, with the number of accredited gaming service providers soaring from 49 in 2023 to an impressive 174 in 2024.

As the online gambling market continues to flourish, these strategic adjustments by Pagcor are expected to further enhance the stability and growth potential of the Philippine gaming industry.