The Philippine Amusement and Gaming Corporation has reduced fee rates for electronic games from 35% to 30% which took place 1 January.
For e-game operators integrated to Philippine resorts, these fees were also reduced to 25% to compensate for the overhead expenses that are often associated with brick-and-mortar operators.
The move to reduce rates attached to e-games by PAGCOR is in a bid to combat illegal gambling activity with the fees collected by the gambling regulator based on a fixed percentage of the licensees’ gross gaming revenue.
PAGCOR Chairman and CEO, Alejandro H. Tengco, said: “By lowering our share rates, PAGCOR is creating a more favorable regulatory environment by encouraging unregistered online gaming operators to transition to the legal market.
Whilst the reduction in e-game fee rates, Tengco also highlighted the opportunities for operators to use resources and funds to focus on marketing initiatives, helping to prevent closures and ensure long-term stability.
“The gradual reduction of share rates has significantly contributed to the growth of the e-game sector, which has become a key driver of the local gaming industry,” added Tengco.
For PAGCOR, its Chairman acknowledged that the gradual reduction in e-game rates has enabled the sector to achieve over PHP 100bn in gross gaming revenue, beating this target throughout 2024.
Before the introduction of the rate reductions, PAGCOR had the fees capped at more than 50% of gross gaming revenue from e-game licensees. The regulator noted that this made operators hesitant to expand due to the lofty percentage.
