MANILA - The Philippine Amusement and Gaming Corporation (PAGCOR) is disputing an audit report saying a casino that it operates has lost over P2 billion in the last 5 years.

In its report released earlier this year, the Commission on Audit (COA) said Casino Filipino (CF) Manila Bay had accumulated P2.113 billion in operating losses since 2014.

Auditors recommended that PAGCOR's management assess CF Manila Bay's ability to continue "in view of the huge losses it incurred."

PAGCOR, however, said that CF Manila Bay started operations only in August 2017.

"The P2.11 billion worth of losses cited by COA, which dated back to 2014, was not accurate as it included the revenue deficits of CF Pavilion, which ceased operations last March 2018," PAGCOR said in a statement.

CF Pavilion is a branch independent of CF Manila Bay, PAGCOR said.

PAGCOR also said it has been posting profits, if auditors exclude the state-owned corporation's mandated contributions and corporate social responsibility financial assistance.

CF Manila Bay’s gross gaming revenue, PAGCOR said, has also been steadily increasing since it opened.

"This has resulted [in] a rise in net operating income from a monthly average of P4.22 million in 2017 to P13.38 million in 2018."

PAGCOR, however, acknowledged that its casinos were facing stiff competition from integrated resorts in Metro Manila. The casino operator said it was implementing a number of measures to stay competitive.