PHILIPPINE Amusement and Gaming Corp. (PAGCOR) said it is requesting that casinos be allowed to reopen, citing the funds that will not go to various government social programs should the company remain unable to generate gaming revenue.

PAGCOR Chairman and Chief Executive Officer Andrea D. Domingo told BusinessWorld that the regulator has “made recommendations” for a casino reopening to the Inter-Agency Task Force on Emerging Infectious Disease (IATF-EID), adding that PAGCOR lost about P5-6 billion worth of revenue a month during the lockdown.

“We have made recommendations to IATF. I am waiting for their decision… Whatever they decide, we have no choice but to follow,” Ms. Domingo said in a text message.

PAGCOR, which regulates the gaming industry, earns a cut of all gambling revenue, with which it funds various government social programs, including sports development initiatives by the Philippine Sports Commission. It is also required as a government-owned and -controlled corporation (GOCC) to remit 50% of its profits to the Treasury.

In 2020, PAGCOR’s contributions to government and funding support “will be reduced accordingly” as gaming revenue declines, according to Ms. Domingo.

“All other socio-civic projects like medical financial assistance, relief operations during fires, national calamities, etc. will also be reduced accordingly,” she added.

Casinos and other forms of gambling have been shut down since mid-March due to the lockdown, with gaming venues also deemed a health risk because of the crowding at casinos.

PAGCOR’s earnings also support a social fund controlled by the Office of the President.

In May, the IATF approved PAGCOR’s recommendation to exempt Philippine offshore gaming operators and their service providers from the gaming ban and allowed them to operate at limited capacity, as long as they settle all their taxes and observe minimum health standards.

Casinos remain banned even in areas where lockdown measures have been eased to the more permissive general community quarantine.

PAGCOR operates nine casino branches and 32 satellite casinos in major cities nationwide.

PAGCOR’s net profit dropped 49.8% year on year to P777.44 million in the first quarter due to the lockdown.

Gaming revenue declined 5.7% to P17.22 billion during the period.

PAGCOR has remitted P26.5 billion in dividends to the government, which had called on GOCCs to remit dividends early to raise cash for the coronavirus pandemic effort. — Beatrice M. Laforga

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