Things have come a long way for the Philippine gaming regulator in the past month and a half. The Philippine Amusement and Gaming Corp. (PAGCOR) initially thought that it would enjoy an upswing in casino revenue this year, even as the coronavirus was furthering its brazen attempt at world domination. Of course, it didn’t take long to realize that its projections weren’t in sync with what was really going on, and the regulator admitted that there was little chance of hitting its revenue goals for the year. Based on the latest figures presented by PAGCOR, the first quarter of the year indicates that there’s a long road to recovery ahead.
The Philippines went on lockdown, just like virtually all of the world, because of the global health pandemic. PAGCOR was forced to halt gambling operations at the casinos under its umbrella as a result and, according to the numbers it just presented, net income for the first quarter of the year dropped by almost 50%. That revenue came in right at $15.44 million, representing a 49.9% year-on-year hit. The gross income was around $31 million, and the regulator is obligated to split its take evenly with the federal government.
With the shutdown orders expected to remain in place until the middle of May, the odds of a quick recovery get even longer. Half of the second quarter of the year will see zero gaming action, possibly resulting in PAGCOR producing even bleaker results at the end of the period. Andrea Domingo, the organization’s chairwoman, put it best when she said, “We can only expect recovery when we are allowed to resume operations. No operations, no revenues.”
Gross gaming revenue from the casinos PAGCOR controls fell 5.72% for the quarter, reaching just $340 million. That includes operations at the ten casinos under PAGCOR’s Casino Filipino brand – located in Angeles, Bacolod, Cebu, Davao, Iloilo, Mactan, Malate, Mimosa, Olongapo, and Tagaytay – and also the 33 satellite venues found scattered throughout Luzon.
The weaker performance of the entire gaming industry in the country could lead to more serious conversations about PAGCOR selling its assets to private companies. This idea was first floated a few years ago and then saw a revival earlier this month. While there are no indications that the Philippines needs to see a quick injection of cash, it wouldn’t be beyond the realm of possibility to assume that some interesting deals are currently being discussed.
Despite the significant drop in revenue, as well as the clear understanding that the second quarter could be worse, PAGCOR isn’t turning its back on its social responsibilities. The organization just gave almost $3 million to the Philippine Sports Commission (PSC) at the end of March to help league athletes and coaches, according to a statement PAGCOR shared with the Manila Times. It also is ready to hand over another almost $2 million once the PSC accepts the check. For the first three months of the year, PAGCOR has allocated a little more than $8 million to the sports group, and has given over $525 million to the government over the last month to help combat COVID-19.
