While certain types of gambling are receiving more attention on the global stage, this doesn’t necessarily mean that the industry is going to see huge spikes in income.   There is a push to allow expanded gambling in a number of countries but, at the same time, those countries want to place serious controls on how the markets operate.  Just like Macau saw a drop from 2018 to 2019 in its performance, so has the Philippine Amusement and Gaming Corp (PAGCOR), the state-backed gaming regulator and casino operator in the Philippines.  According to financial data it released yesterday, PAGCOR reports that its net income plummeted by 71.4% for the whole of 2019.

PAGCOR reports that its net income was PHP9.01 billion (US$177.2 million) for the year, despite an increase of 11.7% in gross gaming income.  Casino customers accounted for PHP24.70 billion ($485.35 million) of the cash flow, while PHP53.28 billion ($1.04 billion) came from junket operators, non-casino customers and other sources of income.  The productivity is a result of PAGCOR’s operations at state-run casinos, as well as its management of certain private-sector venues in the country.

The numbers could have been worse.  The entity received a little support from regulator fees on licensed casinos, which accounted for PHP28.68 billion ($563.56 million) in revenue.  This represents a year-on-year increase of 18.9%, and helped to shore up what would have otherwise been even greater losses.

Expenses took a substantial chunk out of PAGCOR’s gross income for the year.  It tallied deductions of PHP39.77 billion ($781.48 million), divided between its 50/50 revenue-sharing agreement with the country, taxes and the state’s Dangerous Drugs Board.  Those figures were, respectively, PHP35.93 billion ($706.38 million), around PHP3.79 billion ($74.47 million) to cover the 5% franchise tax and PHP60 million ($1.17 million) for the board.