Online gambling sector expansion fuels a 11.2% increase in Pagcor's Q1 revenue
The Filipino gaming authority, Pagcor, has reported a whopping 11.2% surge in Q1 2025 earnings, with a hefty chunk of the PHP28.07 billion ($502.8 million) revenue coming from the booming online gambling sector.
According to official Pagcor figures, the Q1 revenue figure eclipsed the PHP25.24 billion recorded in the same period last year.
Gaming operations accounted for approximately PHP25.52 billion of the total Q1 revenue, a notable 14.5% increase from 2024. As is customary in the Philippine gaming scene, online gambling was the main catalyst behind this growth spurt.
More than half of the gaming revenue, around PHP14.32 billion, originated from online activities such as electronic games and bingo throughout the quarter. Online gambling thus accounted for a colossal 56% of the entire Q1 revenue.
According to the figures, land-based casinos generated PHP8.32 billion, representing a considerable 32.6% of revenue, while Pagcor-operated casinos contributed PHP2.88 billion, equating to 11.3% of the quarterly earnings.
Net Income Soars to PHP4.22 Billion
The surge in revenue was accompanied by a flabbergasting 15.5% reduction in operational expenses to PHP6.21 billion. This financial prudence, combined with the increased revenue, propelled Q1 net income to a staggering PHP4.22 billion, an impressive 23% advancement over the previous year.
Pagcor chairman and CEO Alejandro Tengco lauded the impressive performance, attributing it to enhanced operational efficiency and strategic reforms within the agency. "Our resolute adherence to responsible governance and financial discipline is reflected in these results," said Tengco. "The gains we've made in Q1 will enable us to further contribute to nation-building for the rest of the year."
Pagcor's contributions to nation-building during Q1 reached an astounding PHP18.9 billion, a 21.5% increase year-on-year.
Growth Persists Despite POGO Exit
Despite the exit of POGOs (Philippine Offshore Gaming Operations) in December, largely on the orders of the president, growth in the sector persisted. Offshore gaming revenue for the whole of 2024 amounted to PHP2.99 billion.
Recently, Pagcor announced another cut in its online gambling fee rates, lowering them from 35% to 30%. This move was strategic, aimed at curbing illegal online gambling in the Philippines. The lower rate, effective since January 1, was preceded by a similar reduction last April, when the fee rate was reduced to 35% of gross gaming revenue.
Speaking at the full-year results announcement, Tengco revealed that the gradual fee reduction has attracted more licensees. The number of accredited gaming service providers surged threefold from 49 in 2023 to 174 in 2024.
- The surge in Pagcor's Q1 2025 earnings, reaching PHP28.07 billion, was primarily driven by the online gambling sector, with nearly half of the revenue coming from online activities.
- The casino-and-gambling authority reported a noteworthy 14.5% increase in gaming revenue compared to 2024, with online gambling accounting for a colossal 56% of the total Q1 revenue.
- Despite the exit of POGOs in December, growth in the sector persisted, with offshore gambling revenue for the whole of 2024 amounting to PHP2.99 billion.
- To curb illegal online gambling, Pagcor has reduced its online gambling fee rates twice in the past year, lowering them from 35% to 30%. This strategic move has attracted more licensees, with the number of accredited gaming service providers tripling from 49 in 2023 to 174 in 2024.
