President Marcos Jr. praises PAGCOR for economic contributions & high dividends

President Ferdinand Marcos Jr. of the Philippines acknowledged the Philippine Amusement and Gaming Corporation (PAGCOR) for its substantial contributions to the national government during fiscal year 2025. This recognition highlights PAGCOR's role as a vital pillar of the Philippine economy. The authority has distinguished itself not only through significant revenues but also through its commitment to social initiatives.

PAGCOR's high dividend payment to the national treasury significantly exceeded legal requirements. This demonstrates the gaming authority's dedication to comprehensively supporting government programs and fostering the country's economic stability. Such payments are a crucial factor in financing public services in many states.

Numbers and facts

PAGCOR transferred a considerable portion of its profits to the national treasury. For fiscal year 2024, the distribution amounted to PHP 12.67 billion (Philippine Pesos), equivalent to approximately USD 230 million. This figure represents 75% of PAGCOR's total net income for 2024. The legally mandated minimum distribution for state-owned enterprises, under the Philippine Republic Act No. 7576 (Dividends Law), is 50%. PAGCOR thus made an additional, unsolicited dividend payment of 25%, totaling PHP 4.22 billion.

Alejandro H. Tengco, Chairman and CEO of PAGCOR, commented on the high dividend payments:

“Our 75% dividends remittance is in line with Finance Secretary Ralph Recto’s directive to government-owned and controlled corporations (GOCCs) to advance an additional 25% dividend to support government spending.” - Alejandro H. Tengco, Chairman and CEO of PAGCOR

These additional funds are intended to support important government programs. PAGCOR also reported an 11.2% year-on-year revenue increase in Q1 2025, with total revenues of PHP 28.07 billion. Anthony Mariño, Deputy National Treasurer, emphasized the significance of this amount: 'This substantial dividend contribution will go a long way in boosting our fiscal resources and furthering the administration’s development agenda.' President Marcos Jr. also praised PAGCOR for its role in the Philippines' successful removal from the Financial Action Task Force (FATF) grey list. The authority is also involved in social projects, such as opening its 49th socio-civic center in Barangay San Isidro and donating PHP 90 million for a new dialysis center in Pampanga.

Background

The Philippine Amusement and Gaming Corporation (PAGCOR) serves as the backbone of the regulated gambling market in the Philippines. As a state-owned enterprise, it plays a dual role: it acts as both the operator and the regulator of gambling activities in the country. This combination of commercial operations and regulatory responsibility is rather unusual globally, as many countries strictly separate the operation and regulation of gambling. In Germany, for example, these tasks are clearly delineated between the Joint Gaming Authority of the Federal States (GGL) and licensed operators.

The President's commendation acknowledges not only PAGCOR's financial contributions but also its commitment to transparency and combating money laundering. Its removal from the FATF Grey List is a significant achievement, strengthening international business relations and boosting confidence in the country's financial systems.

Why it matters for German players

For German players, developments in the Philippines have no direct impact. The German gambling market is comprehensively regulated by the GlüStV 2021 (State Treaty on Gambling 2021). This treaty introduced stringent rules for online gambling, prioritizing player and youth protection.

German players are only permitted to play with providers holding a valid license from the Joint Gaming Authority of the Federal States (GGL). Casinos with licenses from Malta (MGA) or Curacao are illegal in Germany. The GGL whitelist is the sole authoritative list for this purpose. In the regulated market, deposit limits of a maximum of 1,000 euros per month and a stake limit of 1 euro per spin for online slots apply. This is intended to prevent excessive gambling behavior. The central cross-game deposit limit is monitored via the LUGAS system, maintaining an overview of monthly deposits across all providers. These measures provide a robust protection framework for German players. The situation in the Philippines serves, at most, as a comparison of how other countries handle gambling revenues.

What it means for GGL-licensed casinos

Licensing by the GGL provides online casinos in Germany with a legal foundation and increased security for players. Unlike PAGCOR, GGL-licensed operators are purely commercial and subject to strict rules. They must ensure transparency and implement comprehensive player protection measures. This includes connection to LUGAS and OASIS (Online Player Status Query), the self-exclusion register.

Compliance with these regulations is not only a legal obligation but also builds trust among players. It is crucial to always check the official GGL whitelist to ensure playing with a legal and regulated provider. Contributions from GGL-licensed casinos primarily consist of tax revenues that benefit the state, unlike PAGCOR's direct profit share.