A report by Morgan Stanley showed the Philippine government collected US$490 million in taxes from the online gaming sector in the third quarter of 2024 alone.
Online gaming in the Philippines is now the biggest source of tax money for the government, according to a study.
A report by Morgan Stanley showed that the Philippine Amusement and Gaming Corporation (PAGCOR) collected a staggering US$490 million in taxes from the online sector in the third quarter of 2024 alone.
As reported by Inside Asian Gaming, the sector benefits from a higher tax rate of 35%, although it has been gradually reduced from 50% two years ago. Secondly, the increasing popularity of online gaming among Filipino players has driven significant growth in the industry.
A key player in this booming market is DigiPlus, a leading B2C online gaming operator that now holds a 50 percent market share. With an impressive 30 million registered users, DigiPlus has surpassed even established industry giants like Bloomberry Resorts Corp., the operator of Solaire Resort & Casino, in terms of both gross gaming revenue (GGR) and earnings before interest, taxes, depreciation, and amortization (EBITDA).
Bloomberry is set to launch its own online gaming app in the third quarter of 2025, but will operate under a separate brand from the existing Solaire app.
Morgan Stanley analysts noted that increased competition is likely on the horizon, especially with PAGCOR's decision to lower taxes on domestic online gaming gross gaming revenue (GGR).
According to Inside Asian Gaming, starting January 1, 2025, license fees for online gaming will drop to 25% for integrated resorts and 30% for other land-based operators. This adjustment aligns online gaming taxes more closely with land-based GGR rates, which are taxed at 25% for mass gaming and 15% for junket operations.
PAGCOR has been actively promoting the growth of domestic online gaming (also known as e-Games), which encompasses various segments such as eCasino, eBingo, sports betting, and specialty games. This strategic focus on online gaming aligns with the government's decision to phase out Philippine Offshore Gaming Operators (POGOs) by January 1, 2025, as ordered by President Ferdinand Marcos Jr.
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