GGRAsia – Pagcor remits to Treasury US$81.7mln booked to 2023

Pagcor remits to Treasury US$81.7mln booked to 2023

Mar 25, 2024 Newsdesk Latest News, Philippines, Top of the deck

The Philippine casino regulator said in a Monday statement it had remitted nearly PHP4.60 billion (US$81.7 million) that day in cash dividends to the nation’s Bureau of the Treasury “to help fund the Philippine government’s efforts in ensuring the country’s sustained economic growth and development”.

The figure represented 75 percent of the net income of the regulator – the Philippine Amusement and Gaming Corp (Pagcor) – attributed for calendar year 2023, although a portion of the cash represented money that had been “advanced”, added the update.

Deputy National Treasurer, Eduardo Mariño (pictured left), received a cheque from Alejandro Tengco (pictured right), chairman and chief executive of Pagcor, at the regulator’s new executive office in Pasay City, Manila.

Pagcor, which is an operator of public-sector casinos as well as regulator of commercial-sector ones, said the payment was “higher than the usual 50 percent remittance,” and followed a request from Finance Secretary Ralph Recto to the regulator “to advance an additional 25 percent dividend to fund government expenditures”.

The first 50 percent cited in the document amounted to PHP3.06 billion, and the remaining 25 percent, to PHP1.53 billion which had been “advanced” and “may be applied to future dividend remittances”.

Mr Tengco was cited as saying that Pagcor’s “robust earnings from gaming operations” enabled it to book PHP79.37 billion in gross revenues, and net earnings of PHP6.13 billion in 2023, “paving the way for a higher dividend rate declaration”.

Mr Tengco added: “Our remarkable income performance in 2023 set the stage for this higher dividend contribution to the national government, and this epitomises not just financial success but our unwavering commitment to national development.”

Treasury official Mr Mariño was cited as saying: “Every peso of this latest remittance from Pagcor is directly translatable to additional expenditure which can help accelerate growth.”

Monday’s update said remittance by government-owned and -controlled corporations of at least 50 percent of their net earnings to the national government is mandated under the country’s Republic Act (RA) No. 7656, otherwise known as the Dividends Law.