The Philippines’ gaming regulator announced it was cutting fees for e-games by 30 percent to encourage more operators to register with them.
The Philippine Amusement and Gaming Corporation (PAGCOR) has announced a further reduction in fees for Electronic Games (E-Games), effective January 1, 2025. This move, lowering fees from 35% to 30%, is aimed at attracting more operators into the legal fold and further fueling the sector's impressive growth.
PAGCOR Chairman and CEO Alejandro H. Tengco explained that integrated resorts operating E-Games will see an even greater reduction, with fees dropping to 25%. This adjustment recognizes the higher overhead costs associated with brick-and-mortar operations.
“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,” Tengco stated. The fees are calculated as a percentage of the licensees’ gross gaming revenues (GGR).
This strategic reduction aims to provide operators with increased resources for marketing and prevent potential closures, ensuring continued growth and profitability within the sector. The strategy has already proven highly effective. Mr. Tengco revealed that the gradual fee reductions initiated in 2023 have propelled the E-Games sector to surpass its Php100 billion GGR target for 2024 as early as September.
Prior to the current leadership, PAGCOR collected fees exceeding 50% of GGR, a policy that hindered expansion. The recent cuts follow a consistent trend of lowering fees, with the most recent adjustment occurring in April 2024, when rates were reduced to 35%.
“The gradual reduction of share rates has significantly contributed to the growth of the E-Games sector, which has become a key driver of the local gaming industry,” Tengco emphasized.
This policy shift has also resulted in a significant surge in licensed E-Games operators, as many previously operating in the gray market have sought PAGCOR licenses. The number of accredited gaming service providers has also seen a dramatic five-fold increase, jumping from 49 in 2023 to 174 in 2024.
The numbers speak for themselves: PAGCOR has issued 1,188 licenses for various on-site and online gaming offerings, a 13.57% increase from the 1,046 licenses issued in 2023.
“We expect this trend to continue, and we are optimistic that the best is yet to come for the country’s E-Games sector,” Tengco concluded.
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