MANILA, Philippines — State-run Philippine Amusement and Gaming Corp. (PAGCOR) is expected to still retain 75 percent of its income even amid plans to privatize its operations and limit its role to being a regulator.
During a hearing of the House committee on games and amusements on Tuesday, PAGCOR assistant vice president for accounting Sharon Quintanilla said 75 percent of the agency’s income comes from its regulatory functions.
This is divided into licensed casinos, e-games, e-bingo and Philippine offshore gaming operations. The remaining 25 percent comes from its role as an operator.
“Instead of earning 100 percent, PAGCOR-operated casinos will be reduced to the license fees if privatized, which is about 15 percent of the 25 percent,” PAGCOR vice president Ramos Villaflor said.
As things currently stand, PAGCOR continues to have a conflicting role as it regulates, authorizes and licenses games of chance, games of cards and games of numbers, particularly casino gaming in the Philippines.
At the same time, it also operates over 40 casinos nationwide.
“PAGCOR was given the two tasks, so whether it’s conflicting or not, we still follow our mandate,” Villaflor said.
“That’s why there are studies on whether to privatize PAGCOR operations and stick to being a regulator,” he said.
Finance Secretary Benjamin Diokno argued that PAGCOR should make its role certain, reviving yet again the previous administration’s plan to sell the agency’s gaming assets.
Diokno maintained that PAGCOR should differentiate its role as it cannot be both a regulator and operator. The Governance Commission for GOCCs is already in the process of evaluating the decoupling of the functions of PAGCOR.
“There are already several proposals on the attempt to privatize. But the only problem is that the estimates that the government will generate are not realistic,” Villaflor said.
“It is seen generating P300 billion, but later on, they will find out that PAGCOR does not have any assets because all casinos are leased in hotels or under a 65-35 sharing agreement,” he said.
Former finance secretary Carlos Dominguez wanted to privatize the gaming operations of PAGCOR to help the government generate additional revenues.
However, the Duterte administration was not able to pursue such plans amid potential revenue loss after the disposal of its gaming operations.
Last year, PAGCOR’s net income surged by over 2,000 percent to reach P4.45 billion amid the continued reopening of the economy that led to better performance of various sectors.
As mandated by law, PAGCOR is tasked to provide portions of its earnings to the Bureau of the Treasury, the Bureau of Internal Revenue, the Philippine Sports Commission and local governments hosting PAGCOR casinos, among others.
PAGCOR is also tapped to provide funds for the implementation of vital laws such as the Early Childhood Care and Development program, the Sports Incentives and Benefits Act, the National Cultural Heritage Act and the Renewable Energy Act.