The Philippine Amusement and Gaming Corporation (PAGCOR) announced that the new 30-percent tax rate for operators of electronically-delivered games, or e-Games, has been in effect since January 1, 2025. This reduction is part of PAGCOR’s broader strategy to curb illegal gaming operations and encourage service providers to operate within the regulated sector, according to a press release issued on Monday.
For e-Games operated by integrated resorts, the fee rate has been further reduced to 25 percent as of the same date. PAGCOR stated that this adjustment aims to offset the higher overhead expenses incurred by physical, brick-and-mortar establishments.
PAGCOR Chairman and CEO Alejandro Tengco emphasized the significance of these reductions in fostering a favorable regulatory environment. “By lowering our share rates, PAGCOR is encouraging unregistered online gaming operators to transition to the legal market,” he said.
The regulator explained that the fees collected from operators are calculated as a fixed percentage of their gross gaming revenues (GGR). The reduced rates, according to Tengco, will allow operators to allocate more resources to marketing, preventing closures while supporting the sector’s continued growth and profitability.
The phased reduction in tax rates has already shown tangible results. As early as September 2024, the e-Games sector exceeded its full-year GGR target of PHP100 billion (approximately USD 1.71 billion). PAGCOR had previously cut the license fee rate to 35 percent in April 2024, down from over 50 percent in 2022.
Tengco noted, “The gradual reduction of share rates has significantly contributed to the expansion of the e-Games sector, now a key driver of the local gaming industry.”
The policy shift has also led to a notable increase in licensed operators. PAGCOR reported a “significant rise” in the number of licensed e-Games operators, with many former grey-market entities securing PAGCOR licenses. In 2024 alone, PAGCOR issued 1,188 licenses for various on-site and online gaming operations—a 13.6-percent increase from 2023. Additionally, the number of accredited gaming service providers surged from 49 in 2023 to 174 in 2024, a fivefold increase.
“We expect this upward trend to continue, and we’re optimistic that the best is yet to come for the e-Games sector,” Tengco added.
The e-Gaming segment recorded a GGR of PHP89.08 billion in the first nine months of 2024, representing a year-on-year growth of 502.8 percent. The third quarter alone saw a GGR of PHP35.71 billion, marking a 464.38-percent increase compared to the previous year.
Tengco also highlighted the role of modern technology in shaping the industry’s future. He stated in November that advancements in technology and mobile devices will ensure that “the future of gaming will be online” in terms of delivery format.
