The president and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR), Alejandro H. Tengco (pictured), announced the agency's plans and programs to make the Philippines a leading gaming destination in the ASEAN region.
President Tengco was invited to deliver the keynote speech on the third day of the G2E Asia IR Summit in Macau on July 13, 2023. In his speech, the head of PAGCOR expressed optimism that with the gaming regulatory reforms that the agency is undertaking, the Philippine gaming industry will be more responsive to the needs of the changing times while addressing the social ills that come with gaming operations.
The Philippine gaming industry has started to recover as it gradually transitions into the new normal. As a result of its mandate to regulate and sustain the integrity of gaming operations in the Philippines, PAGCOR generated P58,96 billion in 2022, an impressive 66,16% year-over-year increase from its total revenue of 35,48 billion in 2021. Last year's net profit reached P4,45 billion, a leap of 2.000% from the P203,57 million recorded in 2021.
This accomplishment enabled the agency to fulfill its other role as a government partner in generating revenue for socio-civic programs by increasing its nation-building contributions from P22,91 billion in 2021 to P34,67 billion in 2022.
In view of PAGCOR's dual role as operator and regulator, its operations have been subject to scrutiny by key decision makers and key players in the gaming industry.
Therefore, since taking office one year ago, the new PAGCOR Board of Directors has begun to strengthen the regulatory function of the agency and has promoted the privatization of the Philippine facilities of the PAGCOR-operated casino. This move will allow the company to grow and compete in both domestic and international markets through the infusion of new capital and advanced technologies that can facilitate expansions, upgrades and innovations.
"By focusing on its regulatory functions, PAGCOR will be able to avoid the complexities of running two different businesses. It can also streamline its processes and create more revenue that will fund high-impact government projects“said Tengco.
Before the PAGCOR gaming venues are privatized, however, they will be upgraded to add value to the properties. Programs include the modernization of information and communication technologies and cyber security infrastructure, including its casino management system and the introduction of the online Philippine casino; updating more than 3.000 electronic gaming machines (EGMs); and updating of the PAGCOR technical standards for EGMs.
To combat the proliferation of illegal gambling in the country, PAGCOR continuously coordinates with various law enforcement agencies. He instituted reforms to address Philippine offshore gambling operations which have recently been associated with crime, money laundering and corruption. It canceled the previous Council's contract with the third party auditor for offshore gaming operations and introduced new fees and levied hefty fines and penalties on licensees and service providers found to be engaging in criminal activity. Additionally, credits have been suspended and canceled and Licensees have been held accountable for the conduct of their Service Providers.
Despite this, gross gaming revenue from online gaming operations is expected to reach P24 billion by the end of this year, more than double last year's P11 billion.
Tengco said: “We will undertake this painstaking process to purge the unscrupulous companies and individuals who are using the PAGCOR license for illegal activities, tarnishing the name of the entire industry and especially the Philippines".
PAGCOR has also accredited gaming system service providers for Traditional Bingo, Electronic Bingo, Electronic Gaming (eCasino), Sports Betting and Electronic Billiards. Its licensed casinos were recently allowed to use premote gaming platforms for their live casino games that cater to their registered casino players.
Currently, PAGCOR is studying the possibility of regulating other aspects of overseas gaming operations or the possible regulation of a special class of Business Process Outsourcing.
Through border closures during the COVID-19 pandemic, PAGCOR has evolved and continues to adapt to changing times by licensing new gaming options within its jurisdiction and regulating them appropriately.
"I know there is still a lot to do, but I believe we are on the right track to make the Philippines a premier gaming destination in the ASEAN region“ concluded Tengco.
