The gambling regulatory body of the Philippines has revealed that its net income fell by almost 50% in the first three months of the year, as the earning from gambling operations fell after the temporary ban on casino activities during the coronavirus pandemic lockdown.
According to a financial statement which the Philippine Amusement and Gaming Corp. (PAGCOR) released earlier this week, the net income of the state-run watchdog saw a 49.8% decline, reaching PHP777.44 million in the period from January to March 2020. In comparison, the regulator’s net income during the same period a year earlier amounted to PHP1.55 billion. Furthermore, the result fell 45.3% short of PAGCOR’s net profit target of PHP1.42 billion for the first quarter.
Andrea D. Domingo, Chief Executive and Chair of the Philippine gambling watchdog, explained in a mobile phone message that the decline was mainly attributed to the temporary ban that was imposed on gambling operations in the country as part of the Government’s social isolation measures to prevent further spreading of the Covid-19 pandemic.
Ms. Domingo said that the PAGCOR could only expect recovery after the quarantine ends and the industry is permitted to resume operations. Until there are no operations, no revenues would be generated, she said.
Coronavirus Shutdown Results in Income Losses of PHP5-6 Billion for PAGCOR
In the first quarter of the year, the Philippine Amusement and Gaming Corp.’s total income generated from gambling operations fell by 5.7% from PHP18.27 billion registered a year earlier to PHP17.22 billion. The result also fell 6% short of its PHP18.33-billion target.
A more significant fall was registered in the gambling regulator’s revenues from other related services. It declined by 38.5% year on year from PHP329.20 million a year earlier to PHP202.48 million in the three months from January to March. PAGCOR’s other income also faced a 29.7% from PHP685.12 million to PHP481.77 million.
As a state-owned organization, PAGCOR is required to remit 50% of its gross income to the country’s Government. Over the first quarter of the current year, the amount received by the Government as part of the firm’s income was worth PHP8.17 billion.
The total expenses of PAGCOR for the afore-mentioned period was lower than the PHP8.14 billion recorded a year earlier, reaching PHP8.09 billion. Still, the result managed to surpass the body’s target of PHP7.65 billion. Furthermore, the operating expenses of the Corporation were about 12% smaller from PHP2.18 billion recorded last year, down to PHP1.92 billion.
PAGCOR’s Chair and Chief Executive had explained that the watchdog, which also operates its own casino venues and a number of VIP slot clubs across the Philippines, is losing between PHP5 and PHP6 billion of income on a monthly basis because of the ongoing shutdown of the gambling sector in the coronavirus pandemic.
