The Philippine Amusement and Gaming Corporation (PAGCOR) takes steps to ease the regulatory environment for the e-games sector and combat illegal gambling operations by reducing fee rates from 35% to 30% effective January 1, 2025.
The Philippine Amusement and Gaming Corporation ( PAGCOR ) has further reduced fee rates for electronic games (e-games) in an effort to make the regulatory environment for the gaming sector more favorable and combat illegal gambling operations. In a statement, PAGCOR announced that its fee rates for e-games will be lowered from 35% to 30%, effective January 1, 2025.
PAGCOR Chairman and CEO Alejandro Tengco explained that this move aims to encourage unregistered online gaming operators to transition to the legal market. Additionally, rates for e-Games operated by integrated resorts have been reduced to 25% to compensate for the higher overhead expenses incurred by brick-and-mortar operators.PAGCOR's fee structure is based on a fixed percentage of licensees' gross gaming revenues (GGR). Tengco stated that the rate cuts will provide operators with additional resources for marketing and help prevent voluntary closures, ensuring the sector's continued growth and profitability. He noted that the gradual reduction in rates allowed the e-games sector to surpass its P100 billion GGR target for the entire 2024 as early as last September. Prior to the current leadership initiating rate reductions in 2023, PAGCOR was collecting fees exceeding 50% of GGR from licensees, which discouraged expansions. The most recent reduction in share rates for e-games occurred in April 2024, when rates were lowered to 35%. Tengco emphasized that the gradual reduction in share rates has significantly contributed to the growth of the E-Games sector, which has become a key driver of the local gaming industry. This policy change has also led to a substantial increase in the number of licensed e-games operators, as many former gray market players have opted to join the mainstream by securing PAGCOR licenses. As of now, PAGCOR has issued 1,188 licenses for various on-site and online gaming offerings, representing a 13.57% increase from the 1,046 licenses issued in 2023. The number of accredited gaming service providers has also surged five-fold, rising from 49 in 2023 to 174 in 2024. PAGCOR expressed optimism that this positive trend will continue and that the best is yet to come for the country's E-Games sector
PAGCOR E-Games Fee Rates Regulatory Environment Illegal Gambling Gaming Industry Electronic Gaming Philippines
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