Pagcor revenues drop amid COVID-19 travel curbs

Philippine Amusement and Gaming Corp. (Pagcor) announced that its gross gaming revenues (GGR) have significantly declined by 30 to 40 percent since February due to government-imposed travel restrictions aimed at containing the COVID-19 outbreak.

Pagcor chairperson Andrea D. Domingo stated that the target GGR of ₱290 billion for the year is likely to be missed, a stark contrast to the 11 percent growth targeted from the ₱260 billion GGR recorded in 2019.

Junket operators, who attract wealthy foreign players primarily from China and Korea, have been the most affected, with revenues from their operations plunging by approximately 50 percent since February.

Revenues from junket operations previously accounted for 60 percent of the total GGR for large-scale casino complexes or integrated resorts.

Philippine offshore gaming operators (POGOs) are also experiencing a downturn, primarily due to disruptions in banking operations in China, Macau, and Hong Kong, although their royalty payments to Pagcor are expected to remain stable as they are based on operational scale.

Out of 60 POGO licensees, five are no longer operational, and one more is on the verge of closing due to the ongoing impact of the COVID-19 outbreak on their businesses.

Pagcor itself has experienced a revenue shortfall of at least ₱5 billion from its own gaming operations.

The decline in gaming income is anticipated to negatively impact Pagcor's contributions to the national government, particularly its support for the universal health care (UHC) program.