Electronic games could contribute 20 billion this year

The electronically-delivered games segment in the Philippines, known as e-Games, could contribute up to PHP20 billion in franchise tax to the Bureau of Internal Revenue (BIR) this year. Finance Assistant Secretary Karlo Adriano made this statement during a Philippine Senate Ways and Means Committee hearing.

The Philippine Amusement and Gaming Corp (PAGCOR) states on its website that e-Games licensees include online gaming platforms from licensed casinos and bingo operations.

Last month, PAGCOR announced that the electronically-delivered games segment remained the industry’s top performer in growth, reaching PHP30.85 billion for the three months ending June 30.

At Thursday’s Senate hearing, Adriano estimated that BIR could collect between PHP15 billion and PHP20 billion this year from the 5 percent franchise tax on PAGCOR e-Games licensees. These figures represent increases of 12.8 percent and 50.4 percent, respectively, compared to last year’s PHP13.3 billion collection from e-Games.

From January to July this year, PHP10.7 billion had already been collected in franchise taxes on e-Games.

In the Philippines, income from all gaming operations, including e-Games, is subject to a 5 percent franchise tax, paid directly to the BIR. This tax is separate from other licensing and regulatory fees paid to PAGCOR.

Senator Sherwin Gatchalian, chairman of the Ways and Means Committee, suggested that e-Games could compensate for the lost revenue caused by the closure of Philippine Offshore Gaming Operators (POGOs). Gatchalian has been a vocal critic of the social harm and criminal activities allegedly linked to some POGO operators.

Alejandro Tengco, PAGCOR’s chairman and CEO, acknowledged that land-based casinos are adapting to e-Games to protect their customer base, as more jurisdictions worldwide legalize online gaming, a trend that could impact the Philippine market.

“E-Games affect land-based casinos, which is why integrated resorts (IRs) are also adapting,” Tengco said. “IRs, both locally and abroad, will not disappear as people still seek the personal experience, but they are also moving online to safeguard their customer base.”

Having the online gaming option benefits players in its convenience that you can play anytime, anywhere. Licensed websites will be safe and trustworthy for players.

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