The Philippine Amusement and Gaming Corporation (PAGCOR) has announced a further reduction in fee rates for Electronic Games (E-Games) from 35% to 30%, effective January 1, 2025.
This move is part of PAGCOR’s strategic efforts to combat illegal gaming operations and foster a more competitive legal gaming industry.
PAGCOR Chairman and CEO Alejandro H. Tengco revealed that the rates for E-Games operated by integrated resorts have been further reduced to 25%, considering the higher overhead costs faced by brick-and-mortar operators.
“By lowering our share rates, PAGCOR is creating a more favorable regulatory environment and encouraging unregistered online gaming operators to transition to the legal market,” Tengco stated.
The fee adjustments are based on a fixed percentage of licensees’ gross gaming revenues (GGR). The PAGCOR chief highlighted that the reduced rates will enable operators to allocate more resources for marketing, prevent voluntary closures, and support the sector’s sustained growth and profitability.
Thanks to these policy changes, the E-Games sector surpassed its Php100 billion GGR target for 2024 as early as September. Tengco also noted that prior to the current administration’s rate reductions, PAGCOR’s fees exceeded 50% of GGR, deterring industry expansion.
The latest reduction follows a previous adjustment in April 2024, when rates were lowered to 35%. The gradual fee cuts have driven substantial growth in the E-Games sector, positioning it as a key contributor to the local gaming industry.
Additionally, the policy shift has encouraged many former gray-market operators to transition to the mainstream by securing PAGCOR licenses. The number of licenses issued by PAGCOR has grown by 13.57%, from 1,046 in 2023 to 1,188 as of this year.
“The gradual reduction of share rates has significantly contributed to the growth of the E-Games sector, strengthening its role as a key driver of the local gaming industry,” Tengco added.