Alejandro Tengco, the chairman and CEO of the Philippine Amusement and Gaming Corp (PAGCOR), revealed plans to reduce the percentage of revenue that the government collects from licensed online casinos. He explained that this move aims to strengthen the competitiveness of legal operators and combat the spread of illegal gambling, according to a report by the Philippine Inquirer.
Tengco announced that he would cut the current 42.5 percent revenue share to 37.5 percent by March 2024. He added that he intends to lower the rate further to between 30 and 32 percent by next year. He emphasized that high rates had driven licensees to seek alternatives, fueling the rise of illegal operations.
“It’s now at 42.5 percent and I’m going to bring it to 37.5 percent by March. I just want to kill illegal gaming. [This] proliferated because Pagcor charged [the licensees] so much,” Tengco said.
Tengco estimated that unlicensed online casinos cause around PHP1 billion (US$17.8 million) in monthly revenue losses for Pagcor. He pointed out that after Pagcor lowered its share to 42.5 percent, the number of monthly online casino closures dropped from about six to only one every two months—indicating an improvement in operator retention.
Last week, Tengco forecasted that the country’s total gross gaming revenue (GGR) for 2024, including non-casino operations, would reach PHP336.38 billion. He projected that electronically-delivered gaming would contribute PHP61.75 billion, while traditional commercial-sector casinos would continue to lead in revenue generation.
By making the regulatory landscape more competitive, PAGCOR supports licensed online operators and strengthens the entire gaming ecosystem. This shift benefits not just the industry but also players—who gain the protection and accountability that only licensed operators can provide.
