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Alejandro H. Tengco, Chairman and CEO of Philippine Amusement and Gaming Corporation(PAGCOR), discussed the agency’s plans and programmes to make the Philippines the leading gaming destination in ASEAN.
Tengco has been invited to give the Keynote Speech on the third of July 2023 at the G2E Asian IR Summit. PAGCOR’s chief, in his speech, expressed his optimism that the Philippine gaming industry would be better able to adapt to changing times with the reforms the agency is implementing.
As it slowly transitioned to the new norm, the Philippine gaming industry began to rebound. PAGCOR, which was mandated to regulate and maintain the integrity of gaming in the Philippines by the Philippine government, generated P58.96 Billion in 2022. This is an impressive increase of 66.16% from the P35.48 Billion total income it had in 2021. Last year, the net income reached P4.45billion. This is a 2000% increase from P203.57million in 2021.
This accomplishment enabled the agency’s other role as a partner of the government in generating revenue for socio-civic programmes by increasing its contribution to nation-building, from P22.91billion in 2021 to a P34.67billion in 2022.
PAGCOR, as both an operator and regulator of the gaming industry, has been scrutinized by major players in the gaming industry and key decision makers.
Since its assumption one year ago, PAGCOR’s new Board of Directors began strengthening the regulatory function of the agency and promoted the privatization of PAGCOR’s Casino Filipino facilities. This move will enable the corporation to compete on both the domestic and international market through the injection of new capital, and advanced technology that can facilitate expansions and upgrades.
By focusing on regulatory functions, PAGCOR can avoid the complexity of running two separate shows. Tengco added that the company can streamline its processes, and generate more revenue to fund high-impact government projects.
Prior to privatization, PAGCOR gaming facilities will be upgraded in order to increase their value. The modernization of Information and Communication Technology and Cybersecurity Infrastructure, which includes the Casino Management System and the introduction of Casino Filipino Online are among the programs. Also included is the upgrading of over 3,000 electronic gambling machines (EGMs) and updating PAGCOR Technical Standards.
PAGCOR works in close coordination with law enforcement agencies to combat illegal gambling. PAGCOR has implemented reforms in order to deal with the Philippine Offshore Gaming Operations, which were recently linked to crime, money laundering, and corruption. The Board has cancelled the contract with the third party auditor of offshore gaming operations entered into by the previous Board. It has also introduced new fees and imposed harsh fines and penalties on Licensees and Service Providers who were found to have engaged in criminal activity. Accreditations were also suspended or canceled, and Licensees held accountable for the actions of their Service Providers.
The gross gaming revenue for online gaming operations will reach P24 billion this year. This is more than twice the P11 billion of last year.
Tengco said, “We will undertake this painstaking procedure to weed-out the unscrupulous businesses and individuals who are using the PAGCOR licence for illegal activities and tarnishing the name of the entire industry and especially the Philippines.”
PAGCOR also accredits Gaming System Service Providers in Traditional Bingo, Electronic Bingo (eCasino), Electronic Games (eBilliards), Sports Betting, and E-Billiards. Recently, its licensed casinos have been allowed to use remote gaming platform for their live casino game that caters to their registered players.
PAGCOR currently studies the possibility of regulating the other aspects of overseas gaming operations or a possible special class of Business Process Outsourcing.
PAGCOR, which had closed its borders due to the COVID-19 pandemic during that time, has evolved to meet the needs of the times and is continuing to do so by licensing and regulating new gaming options in the jurisdiction under which it operates.
Tengco said, “I’m aware that there is still much to do but I think we’re on the right path towards making the Philippines the premier gaming destination in ASEAN.”
