PAGCOR slashes online gaming licence fees to 25%, eyes IR expansion?

Jenny Ortiz September 12, 2024

SiGMA news

PAGCOR slashes online gaming licence fees to 25%, eyes IR expansion?

The Philippine Amusement and Gaming Corporation (PAGCOR) unveiled a sweeping overhaul of its gaming tax structure, aiming to revitalise the country’s gaming sector. Effective from January 1, 2025, the gaming regulator will reduce licence fees on online gaming gross gaming revenues (GGR) from 35?to 25 percent for integrated resorts and 30 percent for other land-based operators. This reduction marks a drop from the previous 50 percent rate set when Alejandro Tengco assumed leadership in August 2022.?

Alejandro Tengco, PAGCOR Chairman and CEO, announced the changes during a keynote address at the Inside Asian Gaming Academy Summit. “By lowering our licence fees to align with global industry standards, we hope to attract and keep more investment in place,” Tengco stated. “It should also encourage illegal online gaming operators to abandon the grey market and hopefully embrace the mainstream.”

Tengco emphasised that the fee reduction aligns with PAGCOR’s strategy to combat illegal online gaming, which has grown rapidly. He highlighted those earlier reductions in the GGR remittance rate, from 55 percent to around 35 percent, had already led to some illegal operators seeking licenses. ?

“PAGCOR will continue to implement rational regulatory policies, monitor our licensees’ compliance, and strengthen our cooperation with other government and law enforcement agencies to crack down on persistent illegal online gaming operations,” Tengco added.

Resort expansion: New projects to boost tourism

In addition to the tax cuts, PAGCOR is set to launch an ambitious expansion plan for integrated resort casinos across the Philippines. A new property is slated to open in Entertainment City by 2025, with further projects in Cebu and Boracay expected by 2026. An economic zone in Central Luzon is also planned for 2027.?

“The expansion of our integrated resorts will not only enhance tourism but also create jobs and attract foreign investment,” he said. This move aims to bolster the Philippine gaming industry’s growth, which has already shown impressive gains.

The sector has witnessed a dramatic rise, with eGames revenues increasing by 525 percent year-on-year in the June 2024 quarter. PAGCOR projects that eGames will generate nearly Php100 billion (€1.6 billion) in 2024, driven by technological advances, the proliferation of mobile devices, and evolving consumer behaviour.?

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