The Philippine Amusement and Gaming Corporation (PAGCOR) announced that as part of the efforts to combat illegal gambling, the rate for electronic games (egames) has been further reduced from 35% to 30% starting January 1, 2025.
Alejandro Tengco, Chairman and CEO of PAGCOR, stated that the rate for electronic games operated in integrated resorts has also been reduced to 25% to compensate for the management costs incurred by physical operators.
In a press release, Tengco said: "By lowering our rates, PAGCOR is creating a more favorable regulatory environment, encouraging unregistered online gambling operators to transition to the legal market."
The rates charged by the gambling regulatory authority are based on a fixed percentage of the Gross Gaming Revenue or GGR of the licensee.
The head of PAGCOR mentioned that the rate cut will provide operators with more marketing resources, while helping to prevent voluntary shutdowns and ensuring the continued growth and profitability of the industry.
Tengco noted that, in fact, the gradual reduction of rates allowed the electronic gaming industry to surpass its GGR target of 100 billion Philippine pesos for the entire year of 2024 as early as September last year.
Tengco stated that before the rate cuts initiated by the current leadership in 2023, PAGCOR charged licensees more than 50% of GGR fees, which hindered expansion.
The most recent rate cut for electronic games before this month was in April 2024, when the rate was reduced to 35%.
"The gradual reduction of rates has greatly promoted the growth of the electronic gaming industry, which has become a major driving force in the local gaming industry," he said.
He added that the policy change also led to a significant increase in the number of licensed electronic game operators after many former grey market participants decided to join the mainstream market by obtaining a PAGCOR license.
So far, PAGCOR has issued 1,188 licenses for various live and online gaming products, an increase of 13.57% from the 1,046 licenses issued in 2023.
The number of recognized gaming service providers has also increased fivefold from 49 in 2023 to 174 in 2024.
"We expect this trend to continue, and we are confident about the best future of the electronic gaming industry in the country," Tengco said.
