The Philippine Amusement and Gaming Corporation (PAGCOR) reported a solid rise in net income for the first nine months of 2025, reaching Php14.32 billion (US$244 million) — a 49% increase year-on-year. However, this growth has recently slowed due to stricter regulations affecting the electronic gaming (eGames) sector.
Revenue Growth Meets Regulatory Hurdles
In the first half of 2025, PAGCOR’s income showed consistent upward momentum, climbing from Php4.2 billion (US$71.5 million) in Q1 to Php6.6 billion (US$112 million) in Q2, fueled by strong eGames performance. But the trend reversed in the third quarter, with income dropping to Php3.5 billion (US$59.6 million) following new restrictions on online gambling.
This downturn followed a Philippine Central Bank directive ordering e-wallet providers to cut direct links to online gambling platforms. PAGCOR told the Senate that its income fell 49% in just two months after the measure took effect. Although the policy aimed to address concerns about illegal gambling, it also impacted licensed and regulated operators under PAGCOR’s supervision.
Revenue Breakdown and National Contributions
Between January and September, PAGCOR’s total revenue reached Php84.1 billion (US$1.43 billion), marking a 5.87% increase from last year’s Php79.4 billion. Gaming operations generated the bulk of this at Php75.9 billion (US$1.29 billion), while other services contributed Php8.16 billion (US$139 million).
Chairman and CEO Alejandro H. Tengco said these results highlight PAGCOR’s push for good governance, digital transformation, and responsible gaming. The agency’s nation-building contributions also grew by 11% to Php54.3 billion (US$924 million), with half of its gaming revenue—after a 5% franchise tax—channeled to the National Government under Presidential Decree 1869. Funds also support key institutions like PhilHealth and the Dangerous Drugs Board.
Taxes and Public Impact
Beyond these remittances, PAGCOR paid Php3.79 billion (US$64.5 million) in franchise taxes and Php609.87 million (US$10.4 million) in corporate income taxes to the Bureau of Internal Revenue (BIR), reinforcing its role as a major taxpayer.
Tengco reiterated that PAGCOR reinvests its earnings into public welfare projects—including classroom construction, healthcare facilities, disaster relief, and community development. He emphasized that maintaining a responsible, well-regulated gaming environment remains one of PAGCOR’s top priorities.
Navigating the Online Gaming Challenge
Despite its progress, PAGCOR faces mounting challenges from the rise of 12,000 unlicensed online operators, which outnumber its 77 licensed platforms. Tengco warned that overly restrictive measures, such as a potential eGames ban, could drive players toward illegal sites, worsening revenue losses and reducing regulatory control.
To counter this, PAGCOR is rolling out AI-powered monitoring systems and a 24/7 responsible gaming helpline. These tools aim to strengthen oversight while promoting safer play.
Although eGames restrictions have tempered its momentum, PAGCOR’s 2025 performance reflects a regulator that continues to adapt. In the months ahead, its success will depend on balancing governance, innovation, and player protection — ensuring the gaming industry remains a vital contributor to the Philippine economy.
