The net profit of the Philippine Amusement and Gaming Corporation (PAGCOR) fell nearly 87% to $3.9 million in 2021 as shutdowns continued to restrict casino operations.
The casino industry in the Philippines has been hit hard by the Covid-19 pandemic, with containment and prevention measures still in place over the past year. By comparison, PAGCOR posted $30.3 million in 2020.
The company’s total gaming revenue net of taxes and contributions was $359.3 million last year, down 9.4% from $396.7 million in 2020. On the other hand, expenditure, which includes contributions to the national government, reached 349.7 million, down 4.48% compared to 2020.
PAGCOR President Andrea Domingo said the significant decline in net income was attributable to the Covid-19 pandemic and the lack of non-gaming revenue. Additionally, the shutdown of some Philippine offshore gambling operators (Pogos) also contributed to the decline in revenue.
“The Pogos missed their target by nearly 20% due to lack of staff, a good number closed and [were impacted by] the downturn in the global economy,” said Domingo.
It is estimated that around 32 of the Philippines’ 60 former Pogos have left the country, with most of them having already been transferred to other jurisdictions.
The President further disclosed that due to declining incomes, there will be less funds to contribute to government programs including universal health care. By comparison, 2020 turned out to be a better year for the state-owned company, as PAGCOR was able to rack up savings over the first three months of the year, when the casinos were in full operation.
Along with the full year 2021 results, the gaming regulator also reported revenue from gaming operations for the fourth quarter of 2021. For the three months ending December 31, 2021, PAGCOR reported revenue of $638.9 million. dollars, up 8.8% from the same period a year earlier, and up 46.5% from the previous quarter.