Scientific Game

PAGCOR found to have underpaid tax, overpaid executives in damning audit report

Thursday, 19 July 2018 06:44
Share
Visit us

Philippines gaming regulator PAGCOR has been accused of granting excessive rewards and allowances to its executive staff while underpaying its mandatory 50% government income share to the tune of Php21.19 billion (US$396 million) since 2011.

The revelations form part of the Commission on Audit’s annual audit report, released this week, which found that PAGCOR had granted cash and gift rewards to officials worth a total of Php12.5 million in 2017 as well as another Php13 million worth of 18-carat gold rings to long-serving employees, which was “in excess of the amount allowed” by law.

Likewise, the COA said PAGCOR had calculated the remittance due to the Bureau of Treasury on income solely from gaming operations rather than from “aggregate gross earnings” over the course of seven years from 2011 to 2017, resulting in an annual shortfall of around Php3 billion. PAGCOR was also found to have underpaid the Philippine Sports Commission by Php1.63 billion in 2017.

Notably, the COA said it had previously raised the issue of PAGCOR’s calculation methods in its 2016 audit report but that the gaming regulator had failed to make any adjustments.  

“The COA Audit Team also continues to hold its stance that the 50% government share should be computed based on the entire income of PAGCOR and not only on income from gaming operations,” it said.

The report suggests there is ongoing disagreement between the COA and PAGCOR as to the gaming regulator’s requirements, with a number of rewards for “service excellence” granted to officials without submitting details to the government first for review and approval.

The COA also said that PAGCOR had exceeded its authorized limits in regards to multiple perks including a Representation and Transportation Allowance, the Cost of Living Allowance, car plans and financial loans to PAGCOR officials.

Despite the damning report, the COA didn’t recommend any particular action be taken against PAGCOR, but instead said it has asked PAGCOR to seek clarification from the Office of the President.

“We recommended and management agreed to seek post facto approval from the Office of the President to avoid possible audit suspensions and/or disallowance,” the COA said.

What's new

Japan lottery ticket sales continue decline

Japan lottery ticket sales continue decline Sales of lottery tickets in Japan have fallen for a second straight year, down 6.9% to JPY786.6 billion in 2017 according to official figures released this week. According to a report in The Japan Times, the decline represents the first time since 1997 that sales have come in below JPY800 billion. ... Wednesday, 15 August 2018 07:24

“Only a matter of time before online gambling becomes legal in Australia”

“Only a matter of time before online gambling becomes legal in Australia” It is “only a matter of time” before Australian lawmakers act to make online gambling legal, according to leading authorities in the field. Speaking at this week’s Gaming, Racing and Wagering Australia (GRWA) conference in Sydney, GamePlan Consultants founder Sudhir Kalé said that he expects... Wednesday, 15 August 2018 07:15

Star lodges development application for new Ritz-Carlton hotel tower in Sydney

Star lodges development application for new Ritz-Carlton hotel tower in Sydney Australia’s Star Entertainment Group has lodged a development application with the NSW Department of Planning for its new AU$500 million Ritz-Carlton hotel tower in Sydney. The proposed hotel and residences tower at The Star Sydney complex, together with works in a connected ribbon development, w... Wednesday, 15 August 2018 06:43

Macau eSports founder denies cryptocurrency scheme accusations

Macau eSports founder denies cryptocurrency scheme accusations The founder of Macau-based eSports organization Grow uP eSports has hit back at what he describes as “baseless and calumnious allegations” in relation to a cryptocurrency mining scheme that has left around 70 Macau locals HK$20 million out of pocket. In a strongly worded statement sent to Insid... Wednesday, 15 August 2018 06:36

Current Issue

OZ VIP: A new dawn

OZ VIP: A new dawn It has taken just 12 months for Australia’s VIP turnover to rebound following the arrests of 19 Crown Resorts employees in China in October 2016, but the balance of power between Australian operators has shifted dramatically in the process. By Ben Blaschke   Just 12 months after the release of... Sunday, 29 July 2018 22:32

Waiting for Garapan

Waiting for Garapan Imperial Pacific says it will miss another deadline for completing its Saipan casino hotel, and there’s no consensus on a completion date. Meanwhile, VIP roll and trade receivable numbers soar. By Muhammad Cohen   Imperial Pacific International continues to excel at manythings. Its monopoly ca... Sunday, 29 July 2018 22:27

License to thrill: How casino re-tendering will shape Macau’s future

License to thrill: How casino re-tendering will shape Macau’s future Professor Glenn McCartney takes a look at the impending Macau casino re-tendering process and why the government’s criteria for issuing licenses will shape the city’s tourism future. By Professor Glenn McCartney   Macau’s casino concession and sub-concession contracts will all end in a few... Sunday, 29 July 2018 22:21

Making live online gaming a reality

Making live online gaming a reality Latency has long been the ultimate challenge for online gaming operators in their quest to provide a quality product, but a new open framework technology could prove to be a game-changer. By Jaheer Abbas | Senior Director, SEA & India at Limelight Networks   It’s hard to imagine that onlin... Sunday, 29 July 2018 22:09