<p>The Philippine Amusement and Gaming Corporation (Pagcor) has announced an 11.2% increase in revenue for the first quarter of 2025, which is primarily attributed to the ongoing expansion of the online gambling sector.</p>
<p>Pagcor’s total revenue for Q1 reached PHP28.07 billion ($502.8 million), as shown by the <a href=”https://www.pagcor.ph/press-releases/pagcor-q1-revenues-hit-php28b-net-income-up-23-percent-to-php4.2b.php” target=”_blank” rel=”noreferrer noopener”>official data released by Pagcor</a>. This figure significantly exceeds the PHP25.24 billion recorded in the <a href=”https://igamingbusiness.com/finance/pagcor-reports-year-on-year-increase-q1-income/” target=”_blank” rel=”noreferrer noopener”>same period in the previous year</a>.</p>
<p>Gaming operations contributed PHP25.52 billion to the total revenue in Q1, marking a 14.5% increase from 2024. The main trigger behind this growth, as has been the case for a while in the Philippines, was online gambling.</p>
<p>More than half of all gaming revenue in the quarter was generated by electronic games and bingo. In total, online gambling produced PHP14.32 billion, which accounts for 56% of all Q1 revenue.</p>
<p>In contrast, licensed land-based casinos generated PHP8.32 billion in revenue, representing a 32.6% share. The remaining PHP2.88 billion was attributed to Pagcor-operated casinos, contributing 11.3% to the total quarterly revenue.</p>
<h2 class=”wp-block-heading” id=”h-net-income-tops-php4-22-billion-as-pagcor-cuts-costs”>Pagcor’s net income reaches PHP4.22 billion as costs decrease</h2>
<p>With the rise in revenue, Pagcor also reported a decrease in operating expenses, which is a result of ongoing emphasis on “financial disciplineâ€, with costs reducing by 15.5% to PHP6.21 billion.</p>
<p>This reduction in expenses, along with the increased revenue, led to a Q1 net income of PHP4.22 billion. This figure is 23% higher than the previous year.</p>
<p>Alejandro Tengco, Pagcor chair and CEO, said that the quarter’s performance reflects enhanced operational efficiency and strategic reforms within the organization.</p>
<p>“This robust performance showcases Pagcor’s dedication to responsible governance and fiscal discipline,†Tengco stated. “The progress we have made in the first quarter will enable us to contribute more significantly to nation-building throughout the remaining year.â€</p>
<p>During Q1, Pagcor’s total contributions to nation-building exceeded PHP18.9 billion, marking a 21.5% increase year-on-year.</p>
<h2 class=”wp-block-heading” id=”h-growth-continues-despite-exit-of-pogos”>Sustained growth despite POGOs departure</h2>
<p>The first quarter is the initial complete reporting period following the cessation of Philippine Offshore Gaming Operations (POGOs) in the country. Pagcor <a href=”https://igamingbusiness.com/gaming/online-casino/pogos-down-to-17-as-deadline-approaches/” target=”_blank” rel=”noreferrer noopener”>ceased POGOs in December</a>, as <a href=”https://igamingbusiness.com/legal-compliance/philippines-president-pogo-ban/” target=”_blank” rel=”noreferrer noopener”>ordered by the president</a>.</p>
<p>Offshore gaming revenue reached PHP2.99 billion in the <a href=”https://igamingbusiness.com/finance/pagcor-revenue-record-2024/” target=”_blank” rel=”noreferrer noopener”>full-year of 2024</a>.</p>
<p>Recently, Pagcor announced a <a href=”https://igamingbusiness.com/finance/pagcor-reduction-egames-rates/” target=”_blank” rel=”noreferrer noopener”>further reduction in its fee rates for online gambling</a>. The rates were reduced from 35% to 30% as part of a strategy to combat illegal online gambling in the Philippines.</p>
<p>Effective from 1 January, this was the second rate cut in less than a year. In the previous April, Pagcor had <a href=”https://igamingbusiness.com/legal-compliance/regulation/pagcor-to-lower-rates/” target=”_blank” rel=”noreferrer noopener”>reduced its gaming rates to 35%</a> of gross gaming revenue.</p>
<p>Tengco, while announcing the full-year results, mentioned that this gradual reduction in rates has attracted more licensees. The number of accredited gaming service providers surged from 49 in 2023 to 174 in 2024.</p>
