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. This move aims to improve the competitiveness of licensed operators.
PAGCOR will cut fees to 30 percent for land-based licenses. Meanwhile, it will reduce fees to 25 percent for integrated resorts involved in online gaming. Alejandro Tengco, PAGCOR’s chairman and chief executive, explained that these changes reflect the greater complexity of their operations.
Mr. Tengco said, “By lowering our license fees to match global industry standards, we aim to attract and retain more investors.” The official Philippine News Agency quoted his remarks 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.”
He emphasized that PAGCOR needed to ensure it charged gaming operators in the country a “fair tariff.” By doing so, PAGCOR hopes to level the playing field for legitimate operators.
PAGCOR reduced the license fee as a share of revenue to 35 percent in April this year. This was down from over 50 percent in 2022, marking a significant decrease.
The Philippine gaming sector, including non-casino operations, generated GGR of PHP89.23 billion in the three months ending June 30. This figure represents a 32.3 percent increase compared to the same quarter last year.
During this period, PAGCOR reported that the electronically-delivered games segment led the industry in growth. The segment reached PHP30.85 billion in GGR for the second quarter alone.
Mr. Tengco attributed the e-Games sector’s growth to rapid technological advances. He also cited the increasing availability and affordability of mobile gadgets and devices. Furthermore, he pointed to evolving consumer behavior that is becoming more technology-driven.
He added, “By year-end, we project this sector will generate close to PHP100 billion in GGR. This projection positions it as the fastest-growing segment in the coming years.”
PAGCOR anticipates that the nation’s gaming industry will generate PHP336.38 billion in GGR this year. This projection represents 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 help licensed operators compete more effectively against the grey market. It is crucial that players only play with licensed operators. Doing so ensures their safety and helps them avoid scams.
