Key Moments:
- PAGCOR’s contributions helped government income for January to August 2025 exceed non-tax revenue goals set by the Treasury.
- The Bureau of the Treasury reported PHP 3.09 trillion (US$52.5 billion) total revenue, a 3.07 percent increase from the same period in 2024.
- Online gaming license fees reached PHP 69 billion (US$1.17 billion) during January to July 2025, with PHP 14.72 billion (US$250 million) directed to the Universal Health Care Law.
Performance from January to August 2025
The Philippine Amusement and Gaming Corporation (PAGCOR) played a pivotal role in boosting government earnings between January and August 2025, enabling the Bureau of the Treasury (BTr) to surpass its non-tax revenue targets. According to the latest BTr cash operations report, the nation’s revenue for this period reached PHP 3.09 trillion (approximately US$52.5 billion), marking a 3.07 percent rise from PHP 2.99 trillion (US$50.8 billion) in the corresponding months of 2024. Although tax receipts formed the majority of this total, the influence of non-tax collections, notably from PAGCOR, was substantial.
PAGCOR’s Support for Non-Tax Revenues
At the end of August, non-tax revenues amounted to PHP 298.3 billion (US$5.1 billion), representing 97.33 percent of the adjusted annual goal of PHP 306.5 billion (US$5.2 billion). The Bureau of the Treasury’s operating income reached PHP 189.3 billion (US$3.2 billion), which accounted for about 63.46 percent of non-tax receipts.
This performance exceeded the revised operating income target of PHP 179.2 billion (US$3.05 billion), driven in part by higher interest earnings from government deposits, dividend payouts, and profit shares from organizations like PAGCOR and the Manila International Airport Authority (MIAA). The Bureau of the Treasury emphasized the critical nature of remittances from government-controlled entities such as PAGCOR in securing non-tax revenues and maintaining fiscal stability.
Growth in Online Gaming Contributions
PAGCOR identified online gaming as a rapidly expanding source of government income heading into 2025. Licensed operations generated PHP 69 billion (US$1.17 billion) in fees between January and July, including PHP 41 billion (US$697 million) from electronic games (E-Games) and PHP 28 billion (US$476 million) from other online gaming activities.
| Source | License Fees (PHP Billion) | License Fees (US$ Million) |
|---|---|---|
| E-Games | 41 | 697 |
| Other Online Gaming | 28 | 476 |
| Total | 69 | 1,173 |
Direct Funding to Nation-Building Efforts
PAGCOR Chairman and CEO Alejandro H. Tengco stated that the agency’s online gaming sector contributed PHP 27.47 billion (US$467 million) in the first seven months of the year to various nation-building initiatives. Of this amount, PHP 14.72 billion (US$250 million) supported the Universal Health Care Law, while the rest was allocated to education, socio-civic projects, wellness, and digital learning centers.
As Tengco put it, “each peso collected goes to finance substantive community projects, anything from classrooms and health initiatives that assist communities in the event of calamities.”
PAGCOR’s Role in Fiscal and Social Stability
PAGCOR’s strong remittance stream continues to be a key element of the Philippine government’s fiscal strategy, supplementing tax revenues and fueling public expenditure. The visible increase in online gaming revenue has highlighted shifting industry dynamics and the government’s evolving regulatory approach.
As PAGCOR sustains its backing for social and health-related initiatives, its financial contributions remain central to ongoing nation-building efforts. The increased income seen in the first half of 2025 has set a positive tone going forward, underlining the enduring role of state-owned enterprises like PAGCOR in ensuring both fiscal sustainability and the promotion of responsible gaming practices.
- Author
Daniel Williams
