State-run Pagcor, or the Philippine Amusement and Gaming Corporation, announced that a new 30-percent rate for operators of electronically-delivered games, also known as e-Games, has been effective since January 1 this year.
In a recent press release, the regulator stated that the rate reduction aims to combat illegal gaming operations. It also ensures that service providers remain within the regulated sector.
Integrated resorts in the Philippines reduced e-Games fees to 25 percent. The agency stated that this is to compensate for overhead expenses incurred by brick-and-mortar operators.
Pagcor’s chairman and CEO, Alejandro Tengco, announced that by lowering their share rates, Pagcor is creating a more favorable regulatory environment. This move encourages unregistered online gaming operators to transition to the legal market.
The regulator collects fee rates from operators. These rates are based on a fixed percentage of the licensees’ gross gaming revenues (GGR).
According to the announcement, the rate cuts aim to prevent voluntary closures. They also seek to ensure the continued growth and profitability of the sector. Pagcor’s boss, Alejandro Tengco, stated that the cuts would provide operators with more resources for marketing.
As early as September 2024, the PHP100-billion or US$1.71-billion GGR target for full-year last year as observed by Mr Tengco that the gradual reduction in rates enabled the e-Games sector to surpass.
In April 2024, they cut the license fee to 35 percent of revenue. In 2022, the rate used to be above 50 percent.
Mr. Tengco said the gradual reduction of share rates has significantly contributed to the growth of the e-Games sector. He noted that e-Games has become a key driver of the local gaming industry.
According to the release citing Mr. Tengco, the policy change has resulted in a significant increase in the number of licensed e-Games operators. Several former grey market players chose to join the mainstream by securing Pagcor licenses.
