PAGCOR gross gaming revenue stalls after e-wallet delinking order

GROSS gaming revenue (GGR) declined 0.11% to P94.51 billion in the third quarter, after electronic wallets were ordered delinked from online gaming sites, the Philippine Amusement and Gaming Corp. (PAGCOR) said.

Nevertheless, electronic gaming remained the company’s top performer, rising 17.4% year on year to P41.95 billion, accounting for 44.4% of GGR.

“The delinking of e-wallets resulted in a short-term decline in activity toward the latter part of the quarter,” PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said in a statement on Tuesday.

In August, the Bangko Sentral ng Pilipinas (BSP) ordered all electronic wallets, banks and other supervised institutions to remove in-app gaming functionality, including any links that direct users to gambling websites.

Mr. Tengco said e-games growth was carried by strong July revenue, which subsequently declined in August and September after the delinking order.

Online gambling has raised concerns about gambling addiction, setting off a debate about whether to ban the industry outright or to regulate it to preserve its contributions to government revenue.

He said illegal online gaming sites continue to expand aggressively, putting players at risk.

“These unauthorized platforms do not follow responsible gaming standards, do not pay taxes, and put players at risk of data theft and fraud,” PAGCOR’s Mr. Tengco said.

He also called on the public to avoid illegal sites and to engage only with PAGCOR-licensed platforms.

Meanwhile, other segments aside from the e-games posted sharp declines.

PAGCOR said revenue generated by government-owned casinos fell 11.6% to P3.64 billion, while bingo revenue slipped 16.2% to P3.79 billion, it said.

Licensed casinos brought in 48.2% of GGR, bingo operations accounted for 4% during the quarter and PAGCOR-operated gaming venues generated 3.4%.

Mr. Tengco remains confident in a rebound, citing player adaptation to new e-wallet protocols and a crackdown on illegal gambling platforms.

The Department of Economy, Planning, and Development (DEPDev) has described the contribution of the industry to the economy as minimal. — Aubrey Rose A. Inosante