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Asia Casino News │ ACN东方博彩新闻

Asia Casino News outlet for Online Gaming and Gambling Industry in Asia.

PAGCOR to Lower Gaming License Fees for Philippine Integrated Resorts Operators

September 11, 2024 Philippines iGaming & Gambling

The Philippine Amusement and Gaming Corporation (PAGCOR) is set to make significant changes to its licensing fees, aiming to boost investment and curb illegal operations. Starting January 2025, the gross gaming revenue (GGR) remittance rates will drop to 30 percent for land-based licenses and 25 percent for integrated resorts engaged in online gaming. This reduction follows an earlier cut in April 2024, when the fee was decreased from over 50 percent to 35 percent.

PAGCOR Chairman and CEO Alejandro Tengco announced these changes during his keynote address during the IAG Academy Summit held in Manila on September 10, 2024. He emphasized that the fee adjustments are designed to align with global industry standards and attract more investors. “By lowering our license fees to be at par with global industry standards, we hope to attract and keep more investors in place,” Tengco was quoted as saying in a report published by PNA.

He also noted that lower fees would help address the challenge posed by the grey market. Tengco observed that illegal online gaming operators were thriving due to high license fees, which led to the closure of legitimate operations.

“The observation I made upon my assumption in the office was that the grey market or the underground market was doing so well, way, way better than Pagcor. And licensees were closing shops, primarily because they could not compete anymore with the grey market,” Tengco explained.

In addition to these changes, Tengco highlighted the expected growth of the Philippine gaming industry. The Philippine gaming sector – including non-casino operations – generated PHP89.23 billion (US$1.59 billion) in GGR in the second quarter of 2024, marking a 32.3 percent increase from the same period last year. The e-Games sector, which includes eCasino, eBingo, sports betting, and specialty games, saw a remarkable 525 percent revenue growth year-on-year.

Tengco is optimistic about the future of the gaming industry, citing the rapid technological advancements and changing consumer behaviors driving the growth of e-Games. “The e-Games sector growth is driven mainly by the rapid technological advances, the increasing availability and affordability of mobile gadgets and devices, and a fast-evolving consumer behavior that is more and more becoming technology-driven,” he said.

He added: “By year-end, we project that this sector will generate close to PHP100 billion in GGR on its way to becoming the fastest-growing segment in PAGCOR in the next few years.”

Looking to the future, PAGCOR plans to sustain industry growth by welcoming new integrated resort casinos. A new integrated resort casino is scheduled to open in the Entertainment City area, with potential projects also planned for Cebu and Boracay by 2026. Furthermore, a new integrated resort in the economic zone of Central Luzon is on the radar for 2027. Another Solaire property is set to debut in southern Luzon by 2028.

PAGCOR anticipates that the Philippine gaming industry will reach PHP336.38 billion in GGR by the end of 2024, representing a 17.9 percent increase compared to the previous year. The performance in the first half of 2024 has already accounted for 50.8 percent of this target.

Read related article: E-games boost PAGCOR gaming revenues up 32% in Q2 2024

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