What is PAGCOR?

Philippine Amusement and Gaming Corporation (PAGCOR): A Key Government-Owned Agency

The Philippine Amusement and Gaming Corporation (PAGCOR) is an agency established by the Office of the President of the Philippines and owned and managed by the Philippine government. It stands as the third-largest revenue source for the Philippine government, following only the Bureau of Internal Revenue and the Bureau of Customs.

PAGCOR was created in response to the increasing prevalence of illegal gambling activities across the Philippines. It was established during the martial law era through Presidential Decree (PD) No. 1067-A, signed by then-President Ferdinand Marcos. Subsequently, the legal framework of the corporation underwent revisions and consolidations. Under its charter, PAGCOR is entrusted with three primary mandates:

1. Regulate, operate, license, and permit card games, digital games, especially casino games within the Philippines.
2. Generate revenue for the social and national development programs of the Philippine government.
3. Assist in promoting the Philippine tourism industry.

In June 2007, the Philippine Congress passed Republic Act No. 9487, extending the corporate life of the state-owned gaming company by 25 years, with an option for another 25-year extension. This act also introduced amendments to PAGCOR's charter, including the following provisions:

1. PAGCOR may enter into agreements with individuals, corporations, associations, or organizations, including joint ventures.
2. It requires consent from local governments to exercise jurisdiction over PAGCOR's operations in their respective areas of operation.
3. The delineation of regulatory authority over gaming activities covered by existing franchises, regulatory bodies, or special laws.
4. PAGCOR operates nine casino branches known as "Philippine casinos" in major cities on three major Philippine islands. These casinos are strategically located in popular tourist destinations such as Metro Manila (Solaire Resort and Casino, Manila Bay Resorts), Luzon (Casino Filipino, Pagcor Club Tropicana Laoag, Casino Filipino Olongapo), Visayas, and Mindanao (Casino Filipino Bacolod, Casino Filipino Cebu, Casino Filipino Davao, Casino Filipino Iloilo).

So, how is PAGCOR's revenue allocated? According to its charter and applicable laws, PAGCOR's revenue distribution is as follows:

• 5% as franchise tax revenue goes to the Bureau of Internal Revenue (BIR).
• 50% of the remaining 95% as statutory income for the national government, distributed to the Department of Finance.
• Host cities that have PAGCOR casinos receive a fixed amount for community development projects.
• PAGCOR pays corporate income tax as per the National Internal Revenue Code.
• 5% of the remaining net income, after franchise tax and national government's share, goes to the Philippine Sports Commission to support national sports development programs.
• 1% of net income is allocated to the Commission on Audit under the Department of Justice to provide compensation for victims of wrongful detention and prosecution.

In addition to these allocations, PAGCOR is also utilized to fund significant legal implementations, such as the Early Childhood Care and Development (ECCD) program aimed at promoting preschool education and incentives and benefits for athletes. Pursuant to Republic Act No. 7656 or the "Dividend Law," PAGCOR distributes at least 50% of its annual net income as cash, stock, and/or property dividends to the national government. Aside from providing support to various institutions and entities, PAGCOR plays a vital role in advancing the Philippine tourism industry and social development.