Pagcor revenue rises 11.2% in Q1 amid ongoing online gambling growth
The Philippine Amusement and Gaming Corporation (Pagcor) has reported an 11.2% year-on-year rise in revenue for Q1 2025, primarily due to continuing growth within the online gambling segment.
Total revenue in Q1 amounted to PHP28.07 billion ($502.8 million), official data published by Pagcor has revealed. This comfortably surpassed the PHP25.24 billion posted in the corresponding period last year.
Gaming operations accounted for PHP25.52 billion of all revenue in Q1, an increase of 14.5% from 2024. As has been the trend for some time in the Philippines, online gambling was the main driver behind this rise.
More than half of all gaming revenue was attributed to electronic games and bingo during the quarter. In total, online gambling generated PHP14.32 billion, or 56% of all Q1 revenue.
In comparison, licensed land-based casinos drew PHP8.32 billion of revenue, equating to a share of 32.6%. The remaining PHP2.88 billion came from Pagcor-operated casinos, with this representing 11.3% of total quarterly revenue.
Net income tops PHP4.22 billion as Pagcor cuts costs
Accompanying the increase in revenue was a reduction in operating expenses. Pagcor said this comes amid a continued focus on “financial discipline”, with costs down by 15.5% to PHP6.21 billion.
This decrease in spending, coupled with higher revenue, allowed Q1 net income to reach PHP4.22 billion. The figure beats the previous year by 23%.
Commenting on the quarter, Pagcor chair and CEO Alejandro Tengco said the performance reflects improved operational efficiency and strategic reforms within the agency.
“This solid performance reflects Pagcor’s commitment to responsible governance and fiscal discipline,” Tengco said. “Gains we have made in the first quarter will allow us to contribute even more to nation-building for the rest of the year.”
Pagcor’s total contributions to nation-building during Q1 topped PHP18.9 billion, up 21.5% year-on-year.
Growth continues despite exit of POGOs
Q1 is the first full reporting quarter since Philippine Offshore Gaming Operations (POGOs) ceased operations in the country. Pagcor ceased POGOs in December, on the orders of the president.
Offshore gaming revenue amounted to PHP2.99 billion in the 2024 full-year.
Pagcor also recently announced a further cut in its fee rates for online gambling. This was lowered from 35% to 30% as part of an effort to combat illegal online gambling in the Philippines.
Effective since 1 January, the lower rate was the second reduction in less than 12 months. Last April Pagcor cut its gaming rates to 35% of gross gaming revenue.
Speaking at the full-year results announcement, Tengco said this gradual reduction in rates has drawn more licensees. The amount of accredited gaming service providers increased threefold from 49 in 2023 to 174 in 2024.