In 2024, the Philippine Amusement and Gaming Corporation (PAGCOR) contributed PHP12.7 billion (approximately US$219 billion) to the national treasury, cementing its position as a significant economic driver in the Philippines. This contribution positioned PAGCOR as the third highest contributor to the national budget, following the Landbank of the Philippines and the Philippines Central Bank, which contributed PHP33.5 billion and PHP18.9 billion, respectively.
On September 16, the Department of Finance (DOF) recognized the pivotal role of government-controlled corporations in bolstering the country’s economy at a ceremony held in Malacañang Palace. Finance Secretary Ralph Recto expressed gratitude to PAGCOR, emphasizing its contribution to enhancing public services without imposing new taxes on Filipino citizens. He noted that PAGCOR had not only met but exceeded the increased expectations for dividend remittances, thereby supporting national development.
The record gaming revenue of PHP112 billion achieved by PAGCOR last year was largely attributed to the surge in online gambling activities. This growth underscores PAGCOR’s substantial impact on the gaming industry and its integral role in strengthening the Philippines’ fiscal health.
PAGCOR Chairman and CEO Alejandro Tengco described the recognition as a testament to the organization’s enduring commitment to nation-building and fiscal accountability. He emphasized that every peso remitted to the national treasury reflects the dedication of PAGCOR’s workforce and the trust of the Filipino people. Tengco reiterated PAGCOR’s status as a dependable partner in enhancing the country’s fiscal position.
In addition to its financial contributions, PAGCOR has committed significant resources to combat illegal gaming activities, a move seen as crucial in maintaining the integrity of the gaming sector. On September 29, Tengco presented a PHP25 million promissory check to the National Bureau of Investigation (NBI), spearheading efforts against unauthorized gaming operations, particularly targeting Philippine Offshore Gaming Operators (POGOs). These entities have been implicated in various illicit activities, including online scams, money laundering, and human trafficking.
The Philippine SunStar reported that Tengco’s symbolic check represents the initial installment of an annual PHP50 million pledge to the NBI, highlighting the shared mission of PAGCOR and the NBI in upholding lawful and responsible gaming practices in the Philippines. Tengco remarked that illegal gambling operators compromise the country’s legal framework, exploit citizens, and jeopardize community safety. By collaborating closely with the NBI, PAGCOR is determined to convey a strong message that unlawful gaming activities will not be tolerated.
NBI Director Jaime Santiago noted that the financial support from PAGCOR would cover expenses related to the detention of POGO workers awaiting deportation and bolster the bureau’s legitimate operations against illegal gaming activities.
Of PAGCOR’s total dividend remittance, PHP8.45 billion accounts for the mandatory 50% government share of its net income, while the remaining PHP4.22 billion represents a 25% advance for future obligations. This proactive financial strategy aligns with the DOF’s directive for government-operated corporations to enhance their dividend contributions by 25% to augment non-tax revenues.
Despite PAGCOR’s significant contributions, the debate over the future of gaming and its socio-economic implications in the Philippines continues. Proponents argue that the industry’s revenue is indispensable for public projects and economic stability, while critics point out the potential social costs associated with gambling, such as addiction and its impact on vulnerable populations.
The ongoing battle against illegal gaming operations further complicates the landscape. While PAGCOR and government agencies intensify efforts to curb unlawful activities, the adaptability and persistence of illegal operators present ongoing challenges. The government’s resolve to address these challenges reflects its commitment to safeguarding the gaming industry’s contributions to the economy while ensuring responsible and fair practices.
As the gaming sector evolves, PAGCOR’s role remains crucial in driving economic growth and supporting national objectives. Balancing the benefits of gaming revenues with the need for robust regulation and social responsibility will be key to sustaining its positive impact on the Philippines’ economy. The discourse surrounding gaming’s future is likely to continue, as stakeholders navigate the complexities of an industry that is both a significant economic contributor and a source of socio-economic debate.