PAGCOR Shines in 2025 Dividend Remittances – Billions for Philippine Treasury

The Philippine Amusement and Gaming Corporation (PAGCOR) has proven to be one of the most important pillars in financing the Philippine national budget. For 2024, they already contributed an impressive 12.7 billion Philippine Pesos (PHP) to the government budget. This performance secured PAGCOR a spot among the top five Government-Owned and Controlled Corporations (GOCCs) for dividend remittances in 2025, a remarkable achievement that underscores its central role in the Philippine economy.

This recognition comes directly from the Philippine Department of Finance (DOF), acknowledging PAGCOR's significant contribution to the national treasury. Such dividend distributions are vital for funding public services and strengthening the country's economy. The gaming regulatory authority thus demonstrates that it not only regulates the gambling sector but also actively contributes to national development.

Numbers and facts

PAGCOR contributed a total of PHP 12.7 billion to the national budget in 2024, ranking third among the largest contributors, surpassed only by the Landbank of the Philippines (PHP 33.5 billion) and the Philippines Central Bank (PHP 18.9 billion). A significant portion of this sum, precisely PHP 8.45 billion, represents the mandated 50% government share of the net income. An additional PHP 4.22 billion is an advanced payment that can be applied to future obligations. The Department of Finance had requested government-controlled corporations to increase their dividends by 25% to boost non-tax revenues.

PAGCOR's impressive performance is partly due to record gaming revenues in 2024, which reached a total of PHP 112 billion. This growth was largely driven by the surge in online gambling.

Background

The Philippine government recognized PAGCOR's fiscal contributions at a ceremony at Malacañang Palace on September 16. Finance Secretary Ralph Recto thanked the regulatory body, noting that it helped improve public services without burdening citizens with new taxes.

"When we set a higher bar for dividend remittances, you not only responded, but exceeded expectations." - Ralph Recto, Philippine Finance Secretary

Alejandro Tengco, Chairman and CEO of PAGCOR, described the award as "a meaningful affirmation of PAGCOR's steadfast commitment to nation-building and fiscal responsibility." He emphasized that every peso remitted to the national treasury reflects the dedication of the workforce and the trust placed in them by the Filipino people. Tengco views PAGCOR as a reliable partner in strengthening the country's fiscal position.

Another important aspect of PAGCOR's work is the fight against illegal gambling. The agency has pledged PHP 25 million to the National Bureau of Investigation (NBI) to support this effort. This sum is the first installment of an annual commitment of PHP 50 million. Illegal gambling operators, particularly Philippine Offshore Gaming Operations (POGOs), have been accused of money laundering and human trafficking. President Ferdinand Marcos Jr. banned POGOs in July 2024 due to their involvement in online scams.

NBI Director Jaime Santiago stated that the funds will cover the costs of food and expenses for POGO detainees still awaiting deportation. They will also support NBI operations against illegal gaming activities.

Why it matters for German players

For German players, the news from the Philippines is only indirectly relevant. While PAGCOR strengthens the legal gambling market in its country, German players must adhere to the rules of the Glücksspielstaatsvertrag 2021 (GlüStV 2021), or State Treaty on Gambling 2021. This treaty has reorganized the German market and introduced strict regulations. This means that only online casinos with a German license from the Joint Gambling Authority of the Federal States (GGL) are legal.

Such GGL-licensed providers can be found on the official GGL whitelist. Players benefit from a high level of player protection and transparency. This includes a betting limit of 1 euro per spin on slot machines and a monthly deposit limit of 1,000 euros via the central monitoring system LUGAS. Such protective mechanisms do not exist in the unregulated market outside Germany. German players should avoid offers from providers without a GGL license. Although these often offer higher bonuses or no restrictions, they pose significant risks to the security of deposits and winnings.

What it means for GGL-licensed casinos

PAGCOR's success story shows how effective state regulation and control can not only protect the gambling sector but also contribute significantly to state finances. The GGL in Germany pursues similar goals, aiming for a transparent and secure gambling market. In the long term, revenues from legal gambling in Germany are also intended to play an important role, for example, in financing measures for addiction prevention.

The strict rules in Germany, such as the LUGAS system, which ensures transparency and compliance with limits, are groundbreaking here. They aim to protect the player experience while maintaining market integrity. A strong regulatory authority like PAGCOR in the Philippines, or the GGL in Germany, is key to a sustainable and responsible gambling market.