Pandemic cripples public health system (Sabong News)

The state-run Philippine Amusement and Gaming Corp. (Pagcor) faces the dire prospects of operating “in deficit” due to the lockdowns against the coronavirus disease 2019 (COVID) pandemic. The Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-MEID) classified the casino, electronic bingo and other Pagcor-licensed online gaming operations among non-essential activities strictly dis-allowed in areas of the country placed under enhanced community quarantine (ECQ), euphemism for hard lockdown. Speaking in ourKapihan sa Manila Baynews forum via Zoom Webinar last Wednesday, Pagcor chairman and chief executive officer (CEO) chairman Andrea Domingo vowed not to let such financial disaster to happen amidst the COVID-19 pandemic. Domingo lamented this public health crisis have caused so much damage to the country’s economy since the hard lockdowns started in March last year. The mandatory contribution of Pagcor to the Universal Health Care (UHC) is precariously threatened by its continuing financial drain, Domingo admitted.From a high of about P18 billion contributed to the UHC program prior to the COVID-19 pandemic, Pagcor contributed only about P8 billion last year. “In 2021, I’m afraid that we would have perhaps only P5 billion (contribution), or even less,” Domingo rued.“And that makes us feel very sad because you know, we have so many problems with COVID and if we continue in this trend, then we will not be able to help at all,” she stressed. Under Republic Act 1223, half of the national government share from Pagcor earnings must be allocated to UHC for the medical needs of all Filipinos under the Philippine Health Insurance Corp. (PhilHealth). The board chairman of the PhilHealth is Department of Health (DOH) Secretary Francisco Duque III who incidentally, co-chairs the IATF. This is why, Domingo disclosed, she presented the financial situation of Pagcor at the IATF meeting last Tuesday. Per Pagcor calculations, it needs to operate up to 75% capacity to recoup, if not match their previous year’s contribution to the UHC once the NCR Plus revert togeneral community quarantine (GCQ), and up to 90% ultimately under modified GCQ. Domingo noted with concern the Pagcor earnings suffered further reduction this year withthe reinstatement of ECQ in the national capital region (NCR), Bulacan, Cavite, Laguna and Rizal for two weeks. Collectively called as the NCR Plus, she cited, the bulk of Pagcor-run casinos operate in these ECQ areas. Prior to ECQ, the NCR Plus were already enjoying less restrictions under the GCQ starting August last year that lasted until March this year. Since then, the IATF every month eased the movement of people and goods until non-essential activities were gradually allowed also up to 50% capacity, including the Pagcor-run casino operations. On recommendations of the IATF, President Duterte reinstated the ECQ at the NCR Plus following the resurgence of the pandemic, largely blamed to the COVID-19 mutations traced from the United Kingdom, South Africa, and lately Brazil. Although subsequently downgraded to modified ECQ (MECQ) until the end of this month, casino operations remain dis-allowed. Last night, the President announced the NCR Plus would remain under MECQ up to May 14 this year. From a high of P80 billion in gaming revenues in 2019, Pagcor earnings went down to below P30 billion last year, Domingo reported. If the ECQ or MECQ continues much longer, she revealed, Pagcor gaming revenues may only reach around P16to P17 billion this year. Adding to the financial drain of Pagcor, Domingo deplored, the increased “illegal” online gaming that proliferated when many casino players were forced to stay at home resorted to or were enticed to gambling activities accessible through the internet. Since these online gaming activities are not registered with the Pagcor, she warned, players are not protected from any hanky-panky by these illegal cyber gaming operators. Domingo echoed these fears as Pagcor gaming operations remain suspended or are running at 50% capacity only depending on quarantine level imposed in areas and regulations of local government units where they operate. Thus, Domingo warned, the costs of operations of Pagcor might soon outpace revenues generated even if many of its casino employees have already been retrenched. Domingo continued with her narratives when the ECQ was first imposed last year, 26 of the 26 casinos of Pagcor were closed down all over the country. When ECQ was reinstated in the NCR Plus, she noted, 6 out of the 6 casinos and about 540 electronic bingo and e-game establishments out of about 830 also in NCR were suspended. Thankfully, Domingo cited, another revenue earner for Pagcor came into operations starting last month – the “e-sabong” that saved the day for its contributions this year to the UHC. But Pagcor’s controversial Philippine Online Gaming Operators (POGOs) that cater to clientele abroad, mostly to “high-rollers” from China and Taiwan, were worst hit by the COVID-19 pandemic.Around 33 POGO operators have already permanently left the country, leaving only 30 firms operating, according to the Pagcor chief. This exodus left some 46,000 unemployed, 15,000 of whom are Filipinos and the bulk were foreign workers, mostly Chinese nationals. Pagcor’s revenues from POGO operations, Domingo estimated, will surely be half of the usual income of POGOs of P8 billion up to P9 billion annually.The domestic downstream industries, she added, were likewise adversely affected by the lockdown from hotels, restaurants, office space and house leasing that serviced the Chinese POGO workers. “This is how the pandemic is actually costing us,” the Pagcor chief bewailed. More than a million of Filipinos have been infected, with half of that number treated in hospitals and over 16,000 sadly died of COVID-19-related infection. With the pandemic persisting in our country, we cannot afford the funding support for the UHC being crippled at these times.