Pagcor’s Revenue Soars Thanks to Online Gambling Growth
The Philippine Amusement and Gaming Corporation (Pagcor) has unveiled a remarkable 11.2% increase in its year-on-year revenue for the first quarter of 2025, signifying a robust trajectory fueled largely by the online gambling sector.
In Q1, total revenue reached PHP28.07 billion ($502.8 million), comfortably outpacing the PHP25.24 billion recorded in the same quarter last year, according to Pagcor’s recent official disclosure. A significant portion of this revenue—PHP25.52 billion—came from gaming operations, marking a notable 14.5% jump from the previous year.
The online gambling sector emerged as the frontrunner in this growth narrative, contributing PHP14.32 billion, which constitutes a striking 56% of the total quarterly revenue. In contrast, licensed brick-and-mortar casinos garnered PHP8.32 billion, or 32.6%, while Pagcor-operated casinos accounted for the remaining PHP2.88 billion, making up 11.3% of the total earnings.
Cutting Costs and Boosting Net Income
In tandem with this revenue surge, Pagcor successfully trimmed its operating expenses by 15.5%, reducing costs to PHP6.21 billion. This strategic cost management allowed the corporation’s net income to ascend to PHP4.22 billion, reflecting a 23% increase from the previous year.
Alejandro Tengco, Pagcor’s chair and CEO, emphasized that this fiscal growth is indicative of operational enhancements and strategic reforms. “This impressive performance underlines our commitment to responsible governance,” Tengco remarked. Furthermore, Pagcor’s contributions to nation-building in Q1 exceeded PHP18.9 billion—a year-on-year increase of 21.5%.
Navigating Changes in the Gaming Landscape
Interestingly, this quarter marks a pivotal point as the first complete reporting period following the suspension of Philippine Offshore Gaming Operations (POGOs). POGOs were officially shut down in December at the directive of the presidency, paving the way for a shift within the gaming landscape.
Despite the exit of POGOs, offshore gaming revenue stood at PHP2.99 billion for the entire year of 2024. In response to rising concerns about illegal online gambling, Pagcor recently implemented a significant reduction in its online gambling fee rates, lowering them from 35% to 30% effective January 1. This is the second reduction within a year, aiming to attract more legitimate licensees and combat illegal activities in the sector.
At the full-year announcement, Tengco noted that this adjustment in fee structures has led to a remarkable increase in registered gaming service providers, which ballooned from 49 in 2023 to an impressive 174 by 2024.
Overall, Pagcor’s robust performance in Q1 of 2025 not only highlights the resilience of the online gambling market but also reflects a broader strategy of fiscal discipline and operational reform, positioning it well for future growth amid evolving regulatory landscapes.