PAGCOR to reduce gambling license cost by April 1

Alejandro Tengco, the chairman and chief executive officer of the Philippine gaming authority, has declared plans to reduce the cost of licenses for online and in-person betting platforms by April 1.

The license cost, which is expressed as a percentage of revenue, would be lowered by 5% to 35 percent, according to Tengco, at the ASEAN Gaming Summit in Manila.

Noting that license prices were above 50% when he entered office in the second part of 2022, Tengco described the decline as significant for the industry. In April, he emphasized that these prices should be in line with global industry standards. He believes this would incentivize illegal activities to apply for licenses, which will increase revenue from licensing and regulations.

Tengco determined that although traditional forms of gaming via regulated commercial-sector casinos will continue to be dominant, electronically-delivered gaming—such as e-casinos, e-bingo, and online sports betting—was the segment of the Philippine gaming industry that was expanding the quickest.

After a record-breaking PHP285.3 billion in 2023, Tengco predicted PHP336.38 billion (US$6.03 billion) in gaming revenue for 2024. He explained this rise in local and international traveler desire for entertainment and leisure travel.

By 2024, Tengco projects that the GGR contributions from commercial sites in Clark, Cebu, Rizal, and Poro Point, as well as the casinos in Entertainment City, Metro Manila, would equal PHP257 billion. Moreover, PHP61.75 billion is anticipated to be generated from gambling that is offered electronically.

He recognized three key factors propelling the industry’s expansion: the opening and operation of more integrated resorts; the remarkable performance of the online gaming market; and the benefits of the anticipated 2025–2026 start of Pagcor-operated casino privatization.

According to Tengco, privatization would guarantee fair play, bring the industry back to life, and guarantee responsible and safe gaming. If Pagcor becomes fully private, the majority of its revenue will come from license and regulatory fees in addition to a share of gross gaming revenues.

Tengco believes that the Philippines will become one of the most desirable gaming jurisdictions in Asia-Pacific as a result of these growth factors. To make the jurisdiction more appealing and competitive in comparison to other Asian countries, ongoing adjustments will be made.

Original story by: GGRAsia