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P.A.G.C.O.R. FIRST HALF REVENUES DOWN
Tuesday August 26, 2014 : P.A.G.C.O.R. FIRST HALF REVENUES DOWN
Regulator and operator suffers the consequences of a licence fee cut.
Philippines gambling regulator and operator Philippine Amusement and Gaming Corporation (PAGCOR) has reported first half 2014 revenues down y-o-y 5.2 percent to pesos 19.96 billion ($445 million), attributing the decline in part to its action in temporarily reducing licence fees for Manila Entertainment City operators.
The reduction saw licence income decline 26 percent to pesos 4.47 billion, the regulatory division disclosed, revealing that high roller and junket gambling licence fees were cut from 15 percent of GGR to 5.2 percent, whilst those for slot machines and electronic gaming machines were chopped from 25 percent to 15 percent of GGR.
Regulatory officials explained that the fee reductions were designed to offset the impact of a decision by the Bureau of Internal Revenue to implement a 30 percent income tax on operators.
PAGCOR gaming revenues actually rose marginally by 1 percent to pesos 14.89 billion, but H1-2014 net income declined 6 percent to pesos 1.32 billion.
Contributions to the coffers of the Bureau of Treasury during the reporting period reached pesos 7.04 billion.
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