Alejandro Tengco, the chairman and CEO of the Philippine gaming regulator, has revealed plans to decrease the percentage of revenue collected from the country’s online casinos. This strategic move is aimed at enhancing the competitiveness of online casinos and mitigating illegal gambling activities, as per statements quoted in the Philippine Inquirer news outlet.
Mr. Tengco, who heads the Philippine Amusement and Gaming Corp (Pagcor), expressed the intention to reduce the revenue share from its current level of 42.5 percent to a range of 30 percent to 32 percent by the following year, down from the previous rate of up to 50 percent.
It’s now at 42.5 percent and I’m going to bring it to 37.5 percent by March [this year]. I just want to kill illegal gaming. [This] proliferated because Pagcor charged [the licensees] so much
Alejandro Tengco, PAGCOR Chairman and CEO
The media outlet reported that Mr. Tengco estimated Pagcor’s monthly loss to unlicensed online casinos at around PHP1 billion (US$17.8 million). The surge in unlicensed online casinos not only posed a threat to legal gambling operations but also prompted the Pagcor chairman to address the issue.
Mr. Tengco shared that there used to be approximately “six closures” of online casinos monthly, but when Pagcor reduced its revenue share to 42.5 percent, the closures decreased to “one … every two months.”
Last week, Mr. Tengco projected the nation’s gross gaming revenue (GGR) for 2024, inclusive of non-casino operations, to reach PHP336.38 billion. While electronically-delivered gaming is expected to contribute PHP61.75 billion in 2024, he highlighted that traditional formats through licensed commercial-sector casinos would take precedence.
PAGCOR providing a more competitive landscape for the online gaming industry is good news for licensed operators, affiliates, and consequentially, the players as well. Unlicensed operators are a big risk to players since they cannot be held accountable if any wrongdoing is done. Licensed operators can assure players that their money is safe and instill confidence.