The Philippine Amusement and Gaming Corporation (PAGCOR) remitted a total of PHP4.59 billion ($81.5 million) in cash dividends to the country’s Treasury on Monday, representing 75 percent of PAGCOR’s net income in calendar year 2023.
According to the press release, the latest remittance is higher than the usual 50 percent remittance pursuant to the request of Finance Secretary Ralph Recto to PAGCOR to advance an additional 25 percent dividend to fund government expenditures.
The remittance aims to ‘help fund the national government’s efforts in ensuring the country’s sustained economic growth and development,’ notes the statement.
PAGCOR Chairman and CEO Alejandro H. Tengco said the state gaming firm’s robust earnings from gaming operations enabled it to book PHP79.37 billion ($1.41 billion) in gross revenues and net earnings of PHP6.13 billion ($109 million) in 2023 as the dividend base, paving the way for a higher dividend rate declaration.
“Our remarkable income performance in 2023 set the stage for this higher dividend contribution to the national government,” Tengco said.
The dividend declaration comprises PHP3.06 billion ($54 million), representing 50 percent of PAGCOR’s 2023 net earnings, along with an advanced 25% totaling PHP1.53 billion ($27 million), which may be applied to future dividend remittances.
The dividend check was received by Deputy National Treasurer Eduardo Anthony Mariño III during a ceremony at the new PAGCOR Executive Office in Pasay City.
Mariño said the higher remittance from PAGCOR would help set in motion the administration’s socioeconomic agenda as the country is coming from a challenging year where it found difficulty achieving growth targets due to inflation.
“Every peso of this latest remittance from PAGCOR is directly translatable to additional expenditure which can help accelerate growth. This would certainly empower the national government in initiating transformative change this year,” he explained.
The remittance by government-owned and controlled corporations or GOCCs of at least 50 percent of their net earnings to the National Government is mandated under Republic Act (RA) No. 7656, otherwise known as the Dividends Law.
In the earlier report by AGB, PAGCOR is anticipating the gross gaming revenues (GGR) for the whole industry in 2024 to reach PHP336.38 billion ($5.9 billion).
This target represents a significant increase of 17.9 percent, equivalent to PHP51.11 billion, ($906.3 million) compared to the 2023 figures.
