PAGCOR has uncollected receivables from POGOs amounting to US$42.7m

The amount of receivables over a year old has grown.
The amount of receivables over a year old has grown.

The Commission on Audit has revealed that PAGCOR has outstanding receivables of nearly PHP2.33bn from Philippine offshore gaming operators.

The Philippines.- The Commission on Audit (COA) has revealed that the Philippine Amusement and Gaming Corporation (PAGCOR) continues to have problems collecting receivables from Philippine offshore gaming operators (POGOs). According to COA’s annual report on PAGCOR, POGOs owed the regulator PHP2.97m as of the end of 2021.

Aggregate PHP2.33bn (US$42.7m) has been classified as uncollected for more than a year since maturity, an increase of 57 per cent from 2020. According to the report, of the amount classified as uncollected for more than a year, PHP815.9m is under “protest” by POGOs. The COA said the remaining PHP1.512bn had been uncollected for more than one to five years.

Auditors said: “The presence of substantial accounts receivable from POGOs has been a persistent issue for several years, despite the existence of collection procedures under Pagcor’s offshore gaming regulatory manual.”

PAGCOR responded: “The affected POGOs, due to the substantial amount of the regulatory fees, filed protest letters on various dates from May 2018 to October 2019. Some of the affected POGOs partially paid while some did not pay the billed amount, hence… the outstanding balances.”

For the first quarter of the year, PAGCOR reported revenue from gaming operations was up 35 per cent year-on-year to PHP11.29bn (US$225.8m). Net income was up 35.05 per cent to PHP624.7m (US$11.8m). PAGCOR said PHP6.73bn in taxes and dues were paid in the first quarter. Spending rose 53.9 per cent year-on-year in the first three months of 2022 to nearly PHP5.07bn.

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