Philippine Amusement & Gaming Corporation (PAGCOR): The Philippines’ Gaming Regulator
PAGCOR is a key player in the Philippine gaming industry. Founded in 1977, this government-owned corporation has shaped casino regulation for nearly 50 years. Its dual role as operator and regulator has greatly influenced the country’s gaming landscape.
PAGCOR is the most profitable state-owned enterprise in the Philippines. It’s the third-largest contributor to government revenues, after the tax and customs bureaus. This shows its crucial role in the nation’s economy.
PAGCOR’s influence spans the entire country. It runs nine casino branches and 35 satellite casinos across major islands. This wide network attracts both local and international gamblers.
Key Takeaways
- PAGCOR was founded in 1977 and is now 47 years old
- It is the most profitable state-owned enterprise in the Philippines
- PAGCOR operates 9 casino branches and 35 satellite casinos nationwide
- It is the third-largest contributor to government revenues
- PAGCOR aims to generate $12.5 billion from gaming by 2028
- It employs over 11,000 workers across its operations
- Atty. Wilma T. Eisma became PAGCOR’s first woman President in April 2024
History and Establishment of PAGCOR
The Philippine Amusement & Gaming Corporation (PAGCOR) has a rich history in Philippine gaming regulation. It was founded during the Martial Law era. PAGCOR’s story is a significant chapter in Philippine gaming history.
Creation during the Martial Law era
PAGCOR was established in 1976 to oversee ten existing gaming casinos. In 1983, President Ferdinand Marcos issued Presidential Decree No. 1869, known as the PAGCOR Charter. This decree directed PAGCOR earnings towards priority projects like flood control.
Reorganization under President Corazon Aquino
In 1987, President Corazon Aquino issued Executive Order No. 260. This order distinguished between Old PAGCOR and New PAGCOR. Under Aquino’s leadership, PAGCOR was restructured to generate funds for the government.
Evolution of PAGCOR’s mandate
PAGCOR’s role expanded beyond casino regulation over time. It now oversees various forms of gambling in the Philippines. In 2016, PAGCOR started the Philippine Offshore Gaming Operations (POGO) program.
That year, PAGCOR generated P55.06 billion in total revenues. It contributed P36.47 billion to state coffers. PAGCOR now operates eight Casino Filipino branches nationwide.
There are 36 gaming satellites and 12 licensed casinos across the country. PAGCOR employs 11,000 people, led by the Chairman and Chief Executive Officer. It has grown from its Martial Law origins to a major player in Philippine gaming regulation.
Philippine Amusement & Gaming Corporation PAGCOR: Structure and Operations
PAGCOR, founded in 1977, is crucial to the Philippine gaming industry. It manages gaming establishments and regulates the sector with over 11,000 employees.
Casino Filipino Branches and Satellite Casinos
PAGCOR runs 9 Casino Filipino branches in major Philippine cities. It also operates 35 satellite casinos across the country’s main islands.
This network ensures widespread access to regulated gaming facilities for Filipinos.
Gaming Licenses and Regulations
Republic Act No. 9487 extended PAGCOR’s mandate for 25 years in 2007. This allows PAGCOR to regulate games of chance and issue gaming licenses.
The corporation can form joint ventures and oversees various gaming activities. It previously managed the Philippine Offshore Gaming Operators program.
Revenue Distribution and Contributions
PAGCOR’s revenue distribution model greatly benefits the Philippine economy. The Bureau of Internal Revenue receives 5% of winnings as franchise tax.
Half of the remaining balance goes to the National Treasury. The Philippine Sports Commission gets 5% for sports development.
The Board of Claims receives 1% of net income for justice-related compensation.
PAGCOR is the third-largest contributor to government revenues. It remits at least 50% of annual net earnings as dividends to the National Government.
The corporation aims to generate 12.5 billion U.S. dollars from gaming by 2028. This goal solidifies its position as a leading ASEAN authority.
| Revenue Allocation | Percentage | Recipient |
|---|---|---|
| Franchise Tax | 5% | Bureau of Internal Revenue |
| National Government Share | 50% of balance | National Treasury |
| Sports Development | 5% of balance | Philippine Sports Commission |
| Justice Compensation | 1% of net income | Board of Claims |
PAGCOR’s Role in the Philippine Economy
PAGCOR is a major contributor to government revenues in the Philippines. The gaming industry, under PAGCOR’s regulation, has grown significantly. In 2016, PAGCOR’s revenues reached P55.06 billion, up 16.62% from the previous year.
PAGCOR operates eight Casino Filipino branches and numerous gaming satellites nationwide. This network creates jobs for about 11,000 people. The agency also supports various national development programs and social initiatives.
In 2021, PAGCOR’s gross gaming revenue hit PHP214.3 billion. This figure represents 84% of the record set in 2019. By 2023, the agency projects revenue to reach PHP244.8 billion.
| Year | Gross Gaming Revenue (PHP) | Percentage of 2019 Record |
|---|---|---|
| 2019 | 256.5 billion | 100% |
| 2021 | 214.3 billion | 84% |
| 2023 (Projected) | 244.8 billion | 95% |
PAGCOR faces challenges, including the recent ban on Philippine Offshore Gaming Operators. However, the agency is adapting to maintain growth. It’s revising junket regulations to meet anti-money laundering standards.
Conclusion: PAGCOR’s Future and Challenges
PAGCOR is at a turning point in shaping its future. It aims to generate $12.5 billion from gaming by 2028. This goal would make the Philippines a top gaming spot in ASEAN.
The industry has grown rapidly. Gross Gaming Revenue hit Peso118 billion in early 2016. This is a big jump from Peso56 billion in 2012.
However, PAGCOR faces major hurdles. The ban on Philippine Offshore Gaming Operators has changed regulations. As of July 2023, all offshore gaming licenses are on probation.
Strict re-application and compliance checks are now in place. These changes aim to increase transparency and fight illegal activities. But they may affect short-term income.
PAGCOR is adapting to the changing ASEAN gaming market. It plans to launch an online casino, Casino Filipino, by early 2024. This shows a move towards digital growth.
The corporation is also selling its owned casinos due to private competition. This shift focuses more on regulation. PAGCOR must balance rules and revenue to stay important in the economy.
FAQ
What is PAGCOR?
PAGCOR is a government-owned corporation in the Philippines. It was established in 1977 through Presidential Decree No. 1869. PAGCOR is the third-largest revenue contributor to the government after two tax bureaus.
What are PAGCOR’s primary functions?
PAGCOR runs its own casinos and VIP slot clubs nationwide. It oversees and regulates private casinos, bingo parlors, and e-games cafes. PAGCOR also issues gaming licenses and regulates various gaming activities in the Philippines.
How was PAGCOR established?
President Ferdinand Marcos created PAGCOR during Martial Law. He issued Presidential Decree No. 1067-A on January 1, 1977. Its initial purpose was to fight illegal casino operations.
How has PAGCOR’s mandate evolved over time?
In 1986, President Corazon Aquino reorganized PAGCOR to raise funds for the government. Its mandate now includes regulating and operating games of chance. PAGCOR also generates revenue for social and national development programs.
Another part of its mandate is promoting the Philippine tourism industry. This helps attract visitors and boost the country’s economy.
What are PAGCOR’s operations and facilities?
PAGCOR runs 9 Casino Filipino branches across the Philippines. It also operates 35 satellite casinos in popular tourist spots. These locations are chosen to attract both local and international visitors.
How does PAGCOR distribute its revenue?
PAGCOR’s revenue goes to various government agencies and programs. 5% of winnings go to the Bureau of Internal Revenue as franchise tax. 50% of the balance goes to the National Treasury.
Cities hosting casinos receive fixed amounts. The Philippine Sports Commission gets 5%, and the Board of Claims receives 1% of net income. PAGCOR also funds specific legal projects.
At least 50% of PAGCOR’s annual net earnings go to the National Government as dividends. This helps support various government initiatives and programs.
What is PAGCOR’s role in the Philippine economy?
PAGCOR is the third-largest contributor to government revenues. Its earnings support many national development programs. These programs include social initiatives that benefit Filipino citizens.
What challenges does PAGCOR face?
PAGCOR must adapt to changing regulations, like the ban on Philippine Offshore Gaming Operators. It aims to increase its role in nation-building. PAGCOR also navigates the evolving landscape of Philippine and regional gaming industries.
