Key Moments:
- PAGCOR’s net income for the first nine months of 2025 reached Php14.32 billion (US$244 million), increasing by 49% compared to last year
- Revenues in the third quarter dropped to approximately Php3.5 billion (US$59.6 million) after regulatory tightening on the eGames sector
- Total contributions to nation-building rose 11% to Php54.3 billion (US$924 million) in the January-September period
Income Expansion and Regulatory Headwinds
The Philippine Amusement and Gaming Corporation (PAGCOR) recorded significant net income growth in the opening nine months of 2025. Net income stood at Php14.32 billion (US$244 million), marking a 49% increase over the same timeframe in the prior year. Despite this pronounced rise, PAGCOR has experienced a recent deceleration in income progress attributed to strengthened restrictions within the electronic gaming (eGames) segment.
Quarterly Performance and Regulatory Changes
In the early quarters, PAGCOR enjoyed steady gains, with income climbing from approximately Php4.2 billion (US$71.5 million) in the first quarter to Php6.6 billion (US$112 million) in the second. This upturn was mainly fueled by eGames, which emerged as a major revenue driver. However, third-quarter figures receded to around Php3.5 billion (US$59.6 million), coinciding with tougher measures impacting eGames activity.
The contraction in the latter part of the period is closely tied to actions by the Philippine Central Bank, which ordered e-wallet providers to cut direct connections to online gambling sites. PAGCOR attributed a 49% drop in income over the next two months to the mandated removal of these links, which, although intended to address online gambling-related concerns, also negatively affected licensed operations under PAGCOR’s oversight.
Financial Breakdown and Government Contributions
| Metric | Jan-Sep 2025 | Jan-Sep 2024 |
|---|---|---|
| Total Revenues | Php84.1 billion (US$1.43 billion) | Php79.4 billion (US$1.35 billion) |
| Gaming Operations Revenue | Php75.9 billion (US$1.29 billion) | – |
| Other Related Services & Income | Php8.16 billion (US$139 million) | – |
| Total Contributions to Nation-Building | Php54.3 billion (US$924 million) | – |
From January to September, total revenues reached Php84.1 billion (US$1.43 billion), reflecting a 5.87% improvement from last year’s Php79.4 billion (US$1.35 billion). Gaming operations delivered Php75.9 billion (US$1.29 billion), while other revenue sources contributed Php8.16 billion (US$139 million).
PAGCOR’s contributions to nation-building climbed by 11% to Php54.3 billion (US$924 million) in the same period. Two-thirds of these contributions were allocated to the National Government as governed by Presidential Decree 1869, which stipulates that half of PAGCOR’s gaming revenues, minus a 5% franchise tax, support government programs, including those run by the Dangerous Drugs Board and PhilHealth.
Taxation and Community Investments
Alongside its government remittance, PAGCOR paid PhP3.79 billion (US$64.5 million) in franchise taxes and PhP609.87 million (US$10.4 million) in corporate income taxes to the Bureau of Internal Revenue (BIR), bolstering its standing as a crucial fiscal contributor.
Chairman and CEO Alejandro H. Tengco underscored PAGCOR’s drive to ensure all earnings are used for public projects, stating that proceeds are funneled towards classroom construction, healthcare, disaster relief, and community development initiatives. He affirmed that the agency remains focused on responsible industry regulation and compliance.
Addressing Illegal Gaming and Strategic Innovations
PAGCOR has raised concerns over the growth of illegal online gambling, with at least 12,000 unauthorized platforms challenging a regulated base of just 77 licensees. The regulator maintains that blanket bans on eGames are counterproductive, potentially channeling players toward unregulated markets and causing substantial revenue and employment losses.
Recent measures by PAGCOR include launching an AI-based monitoring tool and a dedicated 24/7 helpline, bolstering the agency’s approach to responsible gaming even as recent industry restrictions begin to dampen growth in eGames.
Forward Outlook
PAGCOR’s short-term trajectory hinges on balancing governance reforms with new technology to enhance player protection. The organization remains committed to sustaining a regulated gaming sector while maximizing its nation-building contributions for the broader benefit of the Filipino public.
- Author
Daniel Williams
