MANILA, Philippines -- Philippine Amusement and Gaming Corporation reported its revenues dropped in 2014, despite an increase in gaming income.
The state-run Pagcor said its revenues reached P39.99 billion in 2014, a 1.3 percent drop from the P40.52 billion it posted in 2013. It also missed its P45.47 billion target for the year.
The decline in revenue was attributed to Pagcor's move to temporarily lower its license fees to be paid by casinos at Entertainment City last May. This was after the Bureau of Internal Revenue (BIR) slapped a 30-percent income tax on casinos.
Pagcor’s license fees were slashed to 5 percent from 15 percent of gross gaming revenues from high rollers' tables and junket operations; and 15 percent from 25 percent on gross gaming revenues from non-high roller tables, slot machines and electronic gaming machines.
Gaming income in 2014 rose 8.5 percent to P29.93 billion. Pagcor's gaming income accounts for more than half of its annual revenues.
Pagcor said income from other related services fell 28 percent year-on-year to P8.56 billion.
Pagcor is seen to raise additional revenues this year after the Supreme Court ruled last February that its income derived from gaming are exempted from corporate income tax.