To stimulate the Philippine gaming market, the Philippine Amusement and Gaming Corporation (PAGCOR) announced a significant reduction in the licensing fees for online gaming activities of integrated resort operators in the country. Starting January 1, 2025, the licensing fee will be reduced from 35% to 25%, a substantial decrease compared to the initial 50% set when Alejandro Tengco was appointed as Chairman and CEO in August 2022.
In a keynote speech at the IAG Academy Summit, Chairman Tengco, quoted by "Inside Asian Gaming," highlighted the new fee structure aimed at aligning with global industry standards to attract and retain investments. This adjustment is expected to not only boost the legal gaming market but also encourage operators from the gray market to shift towards regulated operations.
Enhancing Compliance and Cooperation
PAGCOR is committed to implementing reasonable regulatory policies and enhancing its supervisory capabilities. "Our goal is to ensure a robust regulatory environment that supports fair competition and combats illegal activities," Tengco emphasized. The organization plans to strengthen cooperation with the government and law enforcement agencies to effectively combat ongoing illegal online gaming activities.
The regulatory body also revealed the explosive growth in the electronic gaming industry, which includes electronic casinos, electronic bingo games, sports betting, and specialty games. For the quarter ending June 2024, the revenue from electronic gaming saw a staggering increase of 525%, with an expected revenue of nearly 100 billion Philippine pesos (approximately 1.76 billion US dollars) for 2024. This growth is mainly attributed to the reduction in licensing fees and the industry's rapid adaptation to technological advancements and changes in consumer behavior.
Strategic Development of Gaming Infrastructure
According to "Asian Gaming Brief," in related developments, PAGCOR expects to add nearly 2,000 slot machines to its Philippine casinos by mid-September 2024. These additional devices are part of a broader plan involving 3,341 new machines, aimed at modernizing the gaming experience and enhancing the casinos' appeal to players and potential investors.
Looking ahead, PAGCOR is preparing for the privatization of its casino operations, expected to commence in May 2025. The plan involves 45 properties and is projected to generate about 81.27 billion Philippine pesos (approximately 1.44 billion US dollars) in gaming revenue for 2024, a 2.4% increase from the previous year. The privatization strategy aims to shift PAGCOR's focus from operations to regulation, enhancing the overall efficiency and profitability of the Philippine gaming industry.
As PAGCOR advances these initiatives, the organization remains committed to maintaining high standards of regulatory oversight and promoting a competitive and compliant gaming industry. Through these strategic adjustments and investments, PAGCOR aims to solidify the Philippines' position as a leading gaming destination in Asia.
