PAGCOR to reduce license and GGR fees by Jan 2025

The Philippine Amusement and Gaming Corp (PAGCOR) will further reduce the gross gaming revenue (GGR) remittance rate for online and on-site betting platforms starting in January next year.

PAGCOR will cut fees to 30 percent for land-based licenses and to 25 percent for integrated resorts involved in online gaming, reflecting the greater complexity of their operations, according to Alejandro Tengco, PAGCOR’s chairman and chief executive.

Mr. Tengco explained, “By lowering our license fees to match global industry standards, we aim to attract and retain more investors.” His remarks were quoted by the official Philippine News Agency during his speech at the opening of the IAG Academy Summit in Manila.

In separate comments to reporters, Mr. Tengco noted, “When I assumed office, I observed that the grey or underground market was thriving, significantly outperforming PAGCOR. Licensees were closing their businesses because they could no longer compete with the grey market.”

Mr. Tengco emphasized that PAGCOR needed to ensure it charged gaming operators in the country a “fair tariff.”

The license fee, as a share of revenue, was reduced to 35 percent in April this year, down from over 50 percent in 2022.

The Philippine gaming sector, including non-casino operations, generated GGR of PHP89.23 billion in the three months ending June 30, marking a 32.3 percent increase compared to the same quarter last year.

PAGCOR reported that the electronically-delivered games segment was the industry’s top performer in terms of growth during this period, reaching PHP30.85 billion in the second quarter.

Mr. Tengco attributed the e-Games sector’s growth to rapid technological advances, the increasing availability and affordability of mobile gadgets and devices, and evolving consumer behavior that is increasingly technology-driven. He added, “By year-end, we project this sector will generate close to PHP100 billion in GGR, positioning it as the fastest-growing segment in the coming years.”

PAGCOR anticipates the nation’s gaming industry will generate PHP336.38 billion in GGR this year, representing a 17.9 percent increase compared to 2023. The first-half aggregate accounted for 50.8 percent of the agency’s target.

Lowering the license fees will benefit licensed operators to be able to be more competitive against the grey market operators. It is important that players only play from licensed operators to be able to ensure safety and avoid scams.

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