What virus? Pagcor expects strong 2020 for PH casinos

The local gaming industry — which includes traditional casinos and online gaming operators — were expected to yield higher revenues in 2020 although it remains to be seen to what extent the global coronavirus epidemic (COVID-19) will deter players and bettors, according to the chief of the state gaming regulator.

Speaking to media on Wednesday (March 11), Philippine Amusement and Gaming Corp. (Pagcor) chair and CEO Andrea Domingo said the agency has a target of P290 billion in gross gaming revenues from the entire gaming industry.

This target — which was imposed by the Governance Commission for Government-owned or -controlled corporations or GCG— included revenues of private operators like the four large casino groups currently operating at the Pagcor Entertainment City in Parañaque and revenues from Philippine Offshore Gaming Operations (Pogos).

If achieved at the end of 2020, this will mark an 11.5-percent increase in gaming revenues for the local casino industry from the P260 billion in total revenues in initial tally for 2019.

Domingo said, however, that this target was given to Pagcor by the GCG before the outbreak of the novel coronavirus early this year, whose full impact on the local gaming sector has yet to be fully seen.

Already, as many as 40 junket groups from overseas — primarily from China — have cancelled their trips to the Philippines. Junkets bring in high rolling players who provide a substantial amount of revenues for local casinos.

Domingo said that Pagcor is also set to improve its revenues this year, despite the COVID-19 epidemic if current foot traffic in casinos, which has yet to decline, is to be the basis.

The Pagcor chief said that the agency can draw in as much as P95 billion in revenues in 2020 which will mark an 18-percent improvement over the revenue level of P80 billion that was reported to management on a preliminary basis for 2019.

“Again, we haven’t factored in the effects of COVID-19 in this year’s target yet, so we’ll have to see,” Domingo said. “But, so far, it looks good.”

She said strong financial performance by the gaming regulator redounds directly to the government which, in turn, benefits the people in terms of more and better quality public services.

Domingo said at least half of net Pagcor income is remitted to the National Treasury every year. “These funds are used to fund the government’s universal health care program, which is very close to our hearts,” she said.

Edited by TSB