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POGO’s revenue cut in half as dozens of operations remain closed: Pagcor
The Philippines’ gaming regulator says that the monthly regulatory revenue of local online gaming operators has been cut in half to PHP300 million (US $ 6.2 million), as only 32 out of 60 companies have been able to resume operations since May. , and in each case only 30- percent capacity.
The Philippine Amusement and Gaming Corp (Pagcor) authorized in May a “Partial resumption” for Philippine Offshore Gaming Operators (POGO) serving overseas customers. The regulator said at the time that the resumption of operations was allowed under “strict conditions” and was aimed at helping the national government “raise the necessary funds to combat the Covid-19 pandemic.”
Jose Tria, assistant vice president of Pagcor’s offshore gaming licensing department, told local media on Thursday that the licenses of five POGOs had been canceled and another five suspended, while 42 service providers had requested to cancel their accreditation.
According to the official, the POGOs have cited restrictions on operations due to the pandemic; the inability of Chinese workers to return to the Philippines; and tighter fiscal policies, as reasons for the recent closures.
The country’s Finance Secretary, Carlos Domínguez, was quoted by local media as saying that government revenues, including corporate and value-added taxes from the real estate sector and other dependent companies, would likely be “negatively affected” by the recession in the POGO industry. He added that online gaming operators had already canceled several office leases, as their Chinese workers had returned home since the start of the pandemic.
But presidential spokesman Harry Roque said at a press conference Thursday that there was no exodus of POGOs from the country and said that only some companies had complied with the government’s requirements and were therefore allowed to resume operations.
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