Despite the steady decline in the number of Philippine offshore gaming operations (POGO) in the country, the industry’s tax payments more than doubled in 2022.
According to data from the Department of Finance (DOF), tax payments made by POGOs to the Bureau of Internal Revenue (BIR) jumped 127 percent to P8.88 billion from P3.91 billion in 2021.
The bulk of these payments came from withholding taxes, totaling P4.35 billion, followed by gaming taxes amounting to P3.65 billion, as the DOF data has shown.
POGO companies contributed P805.99 million in income taxes, P43.2 million in business tax, P19.42 million in documentary tax stamps and P9 million in other taxes.
This increase in tax payments by the sector aligns with the projection made by Alejandro Tengco, Philippine Amusement and Gaming Corp. (Pagcor) chair and chief executive officer, who recently said the gross gaming revenue generated from POGOs is expected to reach P24 billion by the end of 2023, more than doubling the P11 billion achieved in the previous year.
Pagcor remains optimistic despite the declining presence of POGOs in the country, which decreased to 32 as of July 18 from a peak of 281 in 2019. There are also 106 accredited service providers as of said date.
Tengco said Pagcor will implement more stringent monitoring measures and will introduce new fees to strengthen its capabilities in combating illegal gambling operators.
Pagcor has been enforcing strict measures, imposing hefty fines and penalties on POGO licensees and service providers involved in criminal activities.
“We shall undertake this painstaking process to weed out the unscrupulous companies and individuals using the Pagcor license for illegal activities, tainting the name of the whole industry and most especially the Philippines,” Tengco said in a recent conference in Macau.
Meanwhile, Tengco also announced last week the agency intends to launch its own online gaming operations, dubbed as casinofilipino.com, by the first quarter of 2024.
Tengco said the online Casino Filipino aims to employ virtual reality-based technology that can simulate the sights and sounds of a physical casino, thereby offering a realistic and immersive gaming experience.
The online Casino Filipino will “bring several benefits and opportunities such as increased revenue, extended reach and market expansion, cost efficiency, and enhanced customer engagement,” the Pagcor chief added.
Meanwhile, in a press briefing last Friday, Finance Secretary Benjamin Diokno was asked to comment on Pagcor’s planned online gaming operations, to which he responded that while he is in touch with the agency regarding this, the best practice would still be to separate gaming regulation and operations, citing conflict of interest.
The DOF earlier said the long-planned privatization of state-run casinos may finally push through in the next year or two.
