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Only 32 of the 60 POGOs were able to resume operations at a limited capacity of 30%.
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Philippines online gaming revenue fell 50 percent after the COVID-19 pandemic and the resulting restrictions limited offshore gaming operations, the country’s gaming regulator said on Thursday.
Online gaming revenue was cut in half after revenue from Philippines Offshore Gaming Operators (POGO) Y its service providers plummeted by as much as 80 percent during the pandemicstate said Philippine Amusement and Games Corporation (PAGCOR) Assistant Vice President of Offshore Gaming Licensing Jose Tria, as reported by ABS-CBN news.
The agency’s P600 million monthly regulatory fees were cut “almost in half” from only 32 of the 60 POGOs in the country were able to resume operations at a limited capacity of 30 percent, Tria said. Only 111 out of 218 accredited POGO service providers were able to operate following the authorizations of the Internal Revenue Office.
“Our monthly regulatory fees of around P600 million before COVID have now been cut by almost half. This should have been lower if it weren’t for the Minimum Guaranteed Rates that allow PAGCOR to impose regulatory fees higher than two percent of POGO’s GGR. [Gross Gaming Revenues] following ‘whichever formula is higher,’ ”Tria said.
Previously, PAGCOR allowed POGOs to resume operations, but only after meeting conditions such as completing all outstanding tax obligations with the government. At least 5 POGO licenses were canceled, 5 were suspended while 42 service providers have requested cancellation of their accreditation following the imposition of stricter quarantine and tax rules, Tria said.
The departure of the POGOs could negatively affect the government’s tax revenues, Finance Secretary Carlos Domínguez III previously said.. He explained that while the direct tax revenues of the POGOs “are not that much,” the departure of their foreign workers will affect property prices and, since property developers and other companies that benefit from the industry will see much lower income, it will which will result in lower taxes. collections for the government. He also told senators on Wednesday that he received information from the owner of a building in the city of Makati that overseas gaming operators had begun to cancel their leases.
Real estate consultants have said The alleged departure of POGO in the country could damage office and residential spaces in Metro Manila.. Most POGOs have offices in the Bay Area and other centers in Metro Manila. Chinese workers appear to stimulate economic activities in areas where POGOs operate, boosting retail and restaurant businesses.
Leechiu Property Consultants (LPC) earlier this month demonstrated that The POGO sector accounted for 13% of the demand for office space from January to May this year, even with the quarantines. Leechiu said that prior to the COVID-19 crisis, POGOs occupy up to 1.7 million square meters of office space across the country and two million square meters of residential space.
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