The Philippine Amusement and Gaming Corp. (Pagcor) expects a further significant decline in its gaming revenues this year due to the ongoing quarantine restrictions in the country.
Andrea Domingo, Pagcor chairman and chief executive officer, said in a briefing yesterday the agency’s gaming revenues for the year might only be around half of what was generated last year.
“Our earnings have really dipped very low. We see that if (the quarantines imposed) continue to be ECQ (enhanced community quarantine) and MECQ (modified ECQ) and the spread (of the virus) cannot be stopped, we are looking at only about P16 billion to P17 billion this year,” Domingo said.
In comparison, the amount generated in 2019 or pre-pandemic was about P80 billion, which plummeted to just below P30 billion in 2020.
“Last year was better because for the first two and a half months, we were in full operation so we were able to… we already have savings from that. But in 2021, we really started negative,” Domingo said.
With the ongoing restriction, Pagcor is losing an average of about P15 million a day, she said.
“The IRs (integrated resorts), the big ones are losing about P211 million a day or P77 billion a year, and the gaming establishments are losing about P35 million a day, or about P13 billion a year. This is how the pandemic is actually costing us,” Domingo said.
“Also, because of that, from the high of about P18 billion that we contributed to Universal Health Care, which takes care of some of the expenses of PhilHealth, in 2020, we were able to contribute only about P8 billion,” she added.
“In 2021, I’m afraid that might be only P5 billion, or even less, and that makes us feel very sad because, you know, we have so many problems with COVID-19. If we continue in this trend, then we will not be able to help at all,” she also said.
As for the Philippine offshore gaming operators (POGO), 33 licensed operators have closed down while 30 are fully operational, according to Domingo, noting that 200 service providers have also closed down.
“So the income from them, instead of P8 billion to P9 billion a year, maybe it won’t even be half of that amount,” Domingo said in Filipino.
“The problem is, around 46,000 individuals (working in POGOs) lost their jobs, 26,000 of which are foreigners. So if we lost these many foreigners, those who rented out accommodations to them also lost their income,” she added, pointing out lost office rentals due to the closure of some POGOs.
“Right now, what I’m maintaining is an opex (operating expenditure) that is really fat free to the bone, but I do not want to terminate a single employee of Pagcor from the lowest to the highest ranks,” Domingo said.
“So, we’re trying to keep afloat. I think that if MGCQ (modified general community quarantine) would be declared, or GCQ will be declared in the next two weeks in Manila, we might be able to recoup some of our losses,” she added. – Angela Celis
