PAGCOR to reduce gaming fees

Alejandro Tengco, the Chairman and CEO of PAGCOR, announced plans to decrease license fees for both online and onsite betting platforms by April 1st. Tengco stated that the fee, calculated as a percentage of revenue, will be reduced to 35 percent next month, which marks a 5 percent decrease from the current rate.

Speaking at the ASEAN Gaming Summit in Manila, Tengco highlighted the significance of this reduction for the industry, noting that when he assumed office in the latter half of 2022, license fees were over 50 percent. He emphasized that this move aligns Philippine rates with global industry standards, aiming to incentivize illegal operators to obtain licenses, thus boosting licensing and regulatory revenues.

Tengco also projected that electronically-delivered gaming would continue as the fastest-growing segment in the Philippine gaming industry, while traditional formats in licensed commercial-sector casinos would maintain their prominence. He mentioned that the nation’s Gross Gaming Revenue (GGR), inclusive of non-casino operations, is expected to reach PHP336.38 billion in 2024, with 2023 GGR already hitting a record high compared to pre-pandemic levels.

The effects of these growth factors should position the Philippines as one of the most attractive gaming jurisdictions in the Asia-Pacific region,” the Pagcor chairman added. “We will be continuously introducing more reforms to make us even more attractive and more competitive regarding the rest of the jurisdictions in Asia

Alejandro Tengco, PAGCOR Chairman and CEO

Highlighting the key contributors to the industry’s growth, Tengco pointed to the entry of more integrated resorts, strong performance in electronic gaming, and the planned privatization of Pagcor-operated casinos. He revealed that the privatization process for Casino Filipino venues is scheduled to commence between late 2025 and early 2026, aiming to level the playing field and rejuvenate the industry. Once fully privatized, Pagcor’s revenues will primarily stem from regulatory fees, licenses, and a share from gross gaming revenues.

With PAGCOR emphasizing to prioritize their regulatory role through privatization, it ensures safe and responsible gaming practices while sustaining contributions to nation-building. It will clearly differentiate the gaming regulator as a purely regulatory agency and will not a competitor operator anymore if this pushes through.

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