THE Philippine Amusement and Gaming Corp. (PAGCOR) said gross gaming revenue (GGR) is on track to hit the $7-billion target for 2025 despite restrictions imposed on online gambling.

“These numbers affirm the Philippines’ place as one of the fastest-growing and most important gaming markets in Asia,” PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said.

PAGCOR said in a statement on Tuesday that it booked GGR of $3.8 billion in the first half, keeping it on pace to beat the full-year target.

Mr. Tengco cited the rapid rise of electronic gaming as a driver of growth but added that “oversight must evolve to ensure integrity and player protection.”

The online gambling industry is under intense public scrutiny, leaving the government weighing options like an outright ban or higher taxation.

Finance Secretary Ralph G. Recto said last week that the government is proposing an online gaming tax, alongside policy options to limit access to gambling platforms.

PAGCOR has said that it generated P41 billion from electronics games and P28 billion from other online betting platforms between January and July. 

PAGCOR’s measures to address concerns about regulating the industry include a ban on betting using credit cards or cryptocurrency.

Mr. Tengco reiterated his position of shedding the regulator’s role as a casino operator.

“PAGCOR’s dual role has served its purpose, but as the industry matured, it became clear that… a referee cannot also be a player on the same field,” he said.

PAGCOR noted that such a decoupling will require approval from the Governance Commission for Government-Owned and -Controlled Corporations (GCG), which is now reviewing such a restructuring.

The GCG has said that results of the study will be presented to the GCG sitting En Banc within the year.

Once approved, the study will be submitted to the Office of the President, it added.

Mr. Tengco said employees of PAGCOR-run Casino Filipino will be protected through redeployment or hiring by privatized operators. Otherwise, he promised competitive retirement benefits once Casino Filipino is privatized.

He noted a “serious problem” with Casino Filipino, which is projected to incur losses of more than P5 billion. — Aubrey Rose A. Inosante

THE PHILIPPINES needs to move up the copper value chain by investing in higher-value downstream activities rather than simply mining ore, a PwC official said on Tuesday.

Angelo Estrera, Asia-Pacific leader for Business Model Reinvention at PwC, said in a presentation at the 23^rd Management Association of the Philippines International Chief Executive Officer Conference: “We’re literally just digging it out and shipping it. We are not putting any value at it. The opportunities (lie in moving) to processing, refining, manufacturing — you will capture millions downstream.”

He noted the strong prospects for copper, which currently accounts for less than 1% of gross domestic product (GDP).

“We’re sitting on $1 trillion worth of copper, gold, and nickel, zinc, and silver reserves. (These will be key commodities) for the energy transition and yet 5% has only been explored,” he said.

Mr. Estrera said a “copper corridor” can drive future growth but will require the development of proper regulation, infrastructure, and investment, innovation, talent, and technology.

“The Philippines has the fourth-largest reserves; however, 94% is very low-grade copper,” he said, noting that exports generated $3.1 billion in 2024.

Mr. Estrera cited the case of Australia, which generated $2.4 trillion in resource export revenue over the past decade, accounting for about 12.2% of its GDP. Australian resource companies employed 1.2 million workers and $143 billion in corporate taxes during the period.

Separately, Mr. Estrera noted that the business process outsourcing (BPO) industry faces significant risks and significant upside as well.

The industry accounts for 9% of GDP, employs 1.8 million and generates $38 billion in revenue, he said.

“A lot of analyst reports will say anywhere between 40% to 80% of the BPO industry can be disrupted.  Let’s even just say 50% (to use a) round number. What does that mean? 5% of GDP gone, 1 million unemployed. It’s a pillar of our economy right now,” he said.

However, Mr. Estrera also cited a Singapore Economic Development Board estimate that AI can make up 12% of Philippine GDP. — Aubrey Rose A. Inosante