The Philippine Amusement and Gaming Corporation (Pagcor), a combined state-owned corporation and gaming regulator, has set an ambitious target of ₱244.84bn in national gross gambling revenue (GGR) for 2023. This goal was revealed as part of the organization’s performance scorecard submitted to the government. The forecasted GGR represents a significant increase of 33.13%, or ₱60.90bn, compared to the 2022 target. The anticipated revenue also surpasses the actual GGR of ₱214.33bn achieved by the Philippines in 2022.
Strong Growth in the Gaming Sector:
Pagcor Chairman and CEO, Alejandro H Tengco, attributes the raised GGR target to the robust growth of the gaming sector in the previous year. Following the easing of lockdown measures and the reopening of gaming venues, customer confidence gradually returned, resulting in improved attendance at Pagcor-owned casinos. The licensed casinos also experienced significant revenue growth during this period. Tengco’s observations reflect the resilience and adaptability of the gaming industry in the face of challenging circumstances.
Target Breakdown:
Out of the ₱244.84bn target, Pagcor aims to generate ₱68.49bn from its own operations in 2023. This represents a substantial 36.6% increase from the ₱50.13bn target set for 2022 and a 24.41% surge compared to the previous year’s income from gaming. In addition to revenue targets, Pagcor has set other key objectives, including fulfilling its financial obligations to various agencies, achieving ₱1.02bn in profit from gaming activities, and collecting 98% of licenses and regulatory fees from its regulated entities.
Striving for Excellence:
Pagcor is committed to maintaining high standards and improving its regulatory functions and business operations. The organization aims to retain its ISO:9001:2015 certification, achieve 100% of its 2023 deliverables, complete transactions within the prescribed period, revise the agency’s board-approved competency framework, and establish a competency baseline for employees. These endeavors reflect Pagcor’s dedication to operational excellence and its mission to ensure responsible gaming practices while contributing to the nation’s development.
Potential Restructuring:
While Pagcor pursues ambitious plans for gaming development, it is actively considering divesting itself of its commercial operations to transform into a regulatory entity exclusively. This strategic move would allow Pagcor to focus solely on its regulatory role, ensuring a more streamlined and effective oversight of the gaming industry. Such a transformation could bring about greater efficiency and transparency in the sector while upholding the organization’s commitment to responsible gaming practices.
Pagcor’s target of ₱244.84bn in national gross gambling revenue for 2023 reflects the organization’s confidence in the growth potential of the gaming sector. With a strong foundation laid by the previous year’s performance, Pagcor aims to leverage the industry’s resilience and customer confidence to achieve its ambitious objectives.
By focusing on regulatory excellence, fulfilling financial obligations, and promoting responsible gaming, Pagcor seeks to contribute to the nation’s development while ensuring a safe and enjoyable gaming environment. As the organization explores the possibility of restructuring, it strives to evolve and adapt to the changing dynamics of the industry.