The Philippine Department of Finance officially recognizes the significant financial contribution of the state-run gaming regulatory body Pagcor in 2024, totaling 12.7 billion pesos (approximately 219 million US dollars), making Pagcor the third largest contributor to the national budget after the Land Bank of the Philippines and the Central Bank. This contribution includes 8.45 billion pesos of the government-mandated net income share and 4.22 billion pesos of advance payments. Finance Minister Ralph Recto commended Pagcor at a ceremony held at Malacañang Palace for "helping to improve public services without imposing new tax burdens on ordinary Filipinos." Meanwhile, Pagcor also allocated 25 million pesos to support the National Bureau of Investigation in combating illegal gambling activities.
Financial Contributions and Rankings
Data from the Philippine Department of Finance shows that Pagcor contributed 12.7 billion pesos to the government treasury in 2024, becoming the third largest contributing institution to the national budget. This amount is only behind the Land Bank of the Philippines (33.5 billion pesos) and the Central Bank of the Philippines (18.9 billion pesos).
On September 16, the Department of Finance issued certificates of recognition to government-owned or operated companies at Malacañang Palace, acknowledging their financial contributions.
Minister's Speech and Recognition
Finance Minister Ralph Recto thanked Pagcor at the ceremony for "helping to improve public services without imposing new tax burdens on ordinary Filipinos." He specifically noted: "When we raised the dividend remittance standards, you not only responded positively but also exceeded expectations."
This recognition reflects the government's formal acknowledgment of Pagcor's financial performance, emphasizing its important role in national fiscal revenue.
Revenue Growth and Industry Performance
In 2023, driven by the growth of the online gambling industry, Pagcor's gaming revenue reached a record 112 billion pesos. This strong performance laid the foundation for its substantial financial contributions to the government.
Pagcor Chairman and CEO Alejandro Tengco stated that the award "is a strong affirmation of Pagcor's steadfast commitment to national development and fiscal responsibility."
Fund Composition and Allocation
In Pagcor's total dividend contribution, 8.45 billion pesos represents the government-mandated 50% net income share. The remaining 4.22 billion pesos represents the 25% advance payment, which can be used to repay future debts.
The Department of Finance also requested state-owned enterprises to increase dividends by 25% to increase non-tax revenue and further strengthen the national financial foundation.
Actions Against Illegal Gambling
Pagcor has allocated millions of pesos to combat illegal gambling activities. On September 29, Tengco submitted a 25 million peso promissory note to the National Bureau of Investigation to support its fight against black market service providers, including offshore gambling operations.
This is the first installment of the annual 50 million pesos committed by Pagcor to the National Bureau of Investigation specifically for anti-illegal gambling actions.
Fund Usage and Law Enforcement Support
National Bureau of Investigation Director Jaime Santiago stated that the funds will be used to pay for the food and living expenses of detained POGO foreign workers who are awaiting deportation.
In addition, the allocation will "support the bureau's legal actions against illegal gambling activities," enhancing law enforcement capabilities and efficiency.
Leadership Statements and Commitments
Pagcor Chairman Tengco emphasized: "Every penny we deposit into the national treasury reflects the dedication of our employees and the trust of the Filipino people." He described Pagcor as "a reliable partner in strengthening our country's financial situation."
This statement highlights Pagcor's commitment to national fiscal responsibility and its determination to continue contributing.
Awareness of the Dangers of Illegal Gambling
Tengco pointed out at the fund transfer ceremony: "Illegal gambling operators violate our laws, exploit our people, and put our communities at risk." This explains why Pagcor actively supports the fight against illegal gambling.
He added: "We work hand in hand with the National Bureau of Investigation, sending a strong signal: we will not allow illegal gambling activities to continue."
Industry Background and Policy Environment
In July 2024, President Ferdinand Marcos Jr. banned Philippine offshore gaming operators (POGO) due to allegations of online fraud. POGO has also been accused of involvement in money laundering and human trafficking among other illegal activities.
This policy background has prompted Pagcor to strengthen legal gambling regulation while actively supporting the fight against illegal gambling, maintaining the healthy development of the industry.
