The Philippine Amusement and Gaming Corporation (PAGCOR) has further reduced its fee rates for online gambling operations, cutting them from 35% to 30%, effective January 1, 2025. This latest reduction is part of PAGCOR’s continued efforts to curb illegal online gambling activities and attract unregistered operators into the regulated market.
Efforts to encourage legal operations
PAGCOR Chairman and CEO Alejandro Tengco stated that the reduction aims to create a more appealing regulatory landscape for operators. “By lowering our share rates, PAGCOR is creating a more favorable regulatory environment by encouraging unregistered online gaming operators to transition to the legal market,” he said.
The regulatory agency also announced a corresponding reduction in the fee rates for e-games operated by integrated resorts, lowering the rate to 25% to help cover operational costs for land-based operators.
Before the recent adjustments, PAGCOR had significantly higher fee rates, exceeding 50% of gross gaming revenues (GGR). In April 2024, the regulator implemented an initial reduction to 35%, which contributed to increased participation from legal operators.
Growth in licensed operators and revenue
Since PAGCOR initiated these fee reductions in 2023, the number of accredited gaming service providers has surged from 49 in 2023 to 174 in 2024. The agency has also issued a total of 1,188 licenses for both on-site and online gaming operations, representing a 13.6% increase from the previous year’s 1,046 licenses.
Tengco highlighted the positive financial impact of the policy change, noting that the e-games sector surpassed its PHP100 billion GGR target for 2024 as early as September. “The gradual reduction of share rates has significantly contributed to the growth of the e-games sector, which has become a key driver of the local gaming industry,” he emphasized.
Future outlook for the e-games sector
Looking ahead, PAGCOR expects the trend of increased legal participation to continue. Tengco expressed optimism about the future of the e-games sector, citing the positive momentum brought about by regulatory adjustments.
By lowering fee rates, PAGCOR aims to enhance profitability for operators, encourage further market expansion, and reinforce its efforts to combat illegal gambling in the Philippines.
Source:
PAGCOR again slashes E-Games fees, now at 30%, pagcor.ph, January 20, 2025.