Philippine gambling regulator and operator PAGCOR (Philippine Amusement and Gaming Corp.) posted on Tuesday financial information for the six months ended June 30. Net income amounted to PHP2.45 billion for the period in review, reflecting a 2.5% increase from the figure reported for the first half of 2015.
Income from gaming operations totaled PHP26.08 billion, up 19.6% year-on-year. During the quarter ended June 30, gaming operations income amounted to PHP15 billion, up 35.4% as compared to the previous quarter. The gambling regulator and operator of gambling facilities across the country said in its report that it was well ahead of its target for gaming operations income in this year’s first half.
Overall income for the first half of the year amounted to PHP26.92 billion, up 8.6% year-on-year. For the three months ended June 30, revenue increased 33.1% to reach PHP15.37 billion.
Operating expenses for this year’s first half totaled PHP7.04 billion, up 3.7% as compared to the figure posted for the same period a year ago.
Under the current gambling regulations in the country, PAGCOR has to contribute at least half of its annual gross earnings to the Bureau of the Treasury. The amount of PHP12.36 billion was transferred to the Bureau at the end of this year’s first half. Overall, PAGCOR contributed PHP17.43 billion of its earnings for the six months in review to state funds.
The Philippine Commission on Audit argued in a recent report that the gambling corporation had failed to remit the total amount of PHP15.401 billion to the government for the period between 2011 and 2015. PAGCOR was expected to transfer a total of PHP98.521 to the Bureau of Treasury for the said period. However, the amount of PHP72.599 was remitted instead.
The commission said that the gambling regulator had apparently misinterpreted the country’s gambling law, under which it was required to contribute at least 50% of its overall earnings to the government. However, the money PAGCOR contributed represented half of its earnings from gaming operations only. The Commission on Audit argued that the regulator should pay the Bureau of the Treasury a total of PHP15.401 billion in under-remittance for the period from 2011-2015.
