THE Philippine Amusement and Gaming Corp. (PAGCOR) is hopeful gross gaming revenues (GGR) will get well within the second half as lower fuel prices ease pressure on consumer spending, with the electronic gaming segment expected to drive growth.
PAGCOR Chair and Chief Executive Officer Alejandro H. Tengco said he expects electronic gaming activity amongst Class D and E consumers to enhance as fuel prices decline.
“Hopefully, now that fuel prices have gone down, the third and fourth quarters will improve,” he told reporters in Filipino on July 8.
Mr. Tengco said the electronic gaming segment would likely drive growth within the second half.
He said gross gaming revenues within the second quarter likely remained weak since the conflict within the Middle East affected tourism and consumer spending.
“It’s bad. Why? There aren’t any tourists, no VIP players due to war,” he said.
Mr. Tengco said the conflict also affected lower-income consumers, weighing on spending within the electronic gaming segment, which primarily caters to Class D and E markets.
“I feel the second quarter revenues will likely be the identical, but in comparison with last 12 months, it’s going to be much lower,” he said.
The Philippine gaming industry posted P87.6 billion in GGR in the primary quarter, down 15.87% from P104.12 billion a 12 months earlier.
Latest available data from the Department of Tourism (DoT) showed international visitor arrivals reached 2.74 million in the primary five months of the 12 months, up 7.9% from 2.54 million a 12 months earlier.
Despite the rise, arrivals from South Korea, a key marketplace for integrated resorts, declined 10% to 501,000 in the primary five months from 554,000 a 12 months earlier.
Fuel prices have declined in recent months, while headline inflation eased to six.4% in June from 6.8% in May.
Individually, officials said the planned separation of PAGCOR’s regulatory and casino operating functions stays heading in the right direction for completion this 12 months.
The Governance Commission for Government-Owned or -Controlled Corporations (GCG) said its review of the proposed decoupling stays ongoing.
“Hopefully, this 12 months. Since it still has to undergo some processes, like review, to ensure there aren’t any mistakes,” GCG Chair Marius P. Corpus said.
“Kind of it is finished. But I don’t need to offer a selected deadline or timeline, but it’s going to be this 12 months,” he added.
Once the proposal is approved, Mr. Corpus said PAGCOR’s reorganization will probably be implemented in phases.
Asked about private sector interest, he said demand is coming from existing integrated resort operators.
Mr. Tengco said that after the GCG submits its advice to the Office of the President (OP), the OP will review the proposal before issuing an executive order.
“I feel this will probably be my legacy to have the opportunity to decouple and PAGCOR will only be a regulator,” he said. — J.I.D. Tabile