Pagocr's statement on COA findings about uncollected receivables from Pogos

Tue| 9.7.2021 | 1:30 PM

THE Philippine Amusement and Gaming Corporation (PAGCOR) would like to shed light on a recent report by the Commission on Audit (COA) over the agency's "inability to collect past due accounts receivable".

Based on COA's Annual Audit Report on PAGCOR for 2020, the largest "uncollected accounts receivables" were from POGOs at P1.36 billion; followed by a few other gaming operations under its jurisdiction.

PAGCOR would like to state that COA has already been enlightened on the facts surrounding said "uncollected accounts receivables".

In particular, the state-run gaming firm explained that the said past due receivables flagged by COA were products of its intensive fight against illegal online gambling and its overzealousness to maximize collections for government coffers.

For the years 2018, 2019 and 2020, PAGCOR intensified its regulatory efforts by conducting research and carrying out investigations on undeclared websites, games and operations which are supposedly linked to the agency's POGO Licensees.

PAGCOR found several websites which appear to be mirrors of the declared websites of its operators as they contain their games, with some even containing their brands or logos.

As an initial remedial measure, the agency imposed assumed or estimated billings for these websites based on the average income performance of the original declared websites of its licensees, subject to their availing of PAGCOR's protest mechanism for questioned billings. These billings were protested by its licensees, on the basis that the websites are actually websites of illegal operators, stealing their live streams and making it appear as the legal websites of our operators.

At present, said amount and the discovered websites are still in the process of revalidation pursuant to existing procedures. While some have already been resolved, the others are still undergoing thorough validation.

The COA audit observation on past due receivables persists and remains unresolved due to the unsettled protests filed by other POGO licensees.

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