Pagcor Appears Confident About Rebounding Its Gaming Revenues to Pre-Pandemic Levels
MANILA, Philippines (November 6, 2023) — The Philippine Amusement and Gaming Corp. (Pagcor) appears confident about rebounding its gaming revenues to pre-pandemic levels despite the absence of traditional high rollers or “whales” in local casinos. Pagcor Chairman and Chief Executive Officer Alejandro H. Tengco attributes this optimism to the lifting of travel and movement restrictions, which has boosted demand for various activities such as dining, shopping, and other outdoor experiences that were constrained during the pandemic.
The Chairman mentioned that the easing of mobility restrictions and the first year of President Ferdinand Marcos Jr.’s term have seen gross gaming revenues (GGR) return to levels near those of 2019 when Pagcor achieved its all-time high for Philippine GGR. They anticipate that the GGR for 2023 may match or even surpass the 2019 record. This is attributed to the contribution of domestic players and the influx of new tourists filling the gap left by the absence of traditional high rollers and junkets.
Additionally, the growth of the local gaming industry is expected to be supported by the opening of more integrated resorts, including those in Clark. Pagcor is also embarking on a modernization program to increase revenues. As part of this effort, they plan to purchase 3,000 brand new slot machines by January next year and have a revenue-sharing scheme in place with a supplier, expecting to generate at least P18 billion in revenues over the next five years. They are also modernizing their table games by replacing old ones with newer and more sophisticated gaming tables to attract more players and boost revenue.
In August, Pagcor projected a total income of P75.495 billion for the year, which is about 28.04 percent higher than the previous year’s total income of P58.96 billion. Of this projected income, about P71.307 billion is expected to come from gaming operations. In 2019, Pagcor’s total income was P79.419 billion, with P75.759 billion coming from gaming operations. In the first half of the year, Pagcor’s total income rose by 35.64 percent to P36.217 billion from P26.7 billion in the same period of the previous year.
SOURCE: News Services.Tags: gross gaming revenue (GGR), Pagcor, Pre-Pandemic Levels