The gross gaming revenue (GGR) remittance rates for both online and brick-and-mortar betting activities have been lowered, according to a statement released by the Philippine Amusement and Gaming Corp (Pagcor). With effect from January 2025, this change aims to bring the nation’s fees into line with international industry norms and increase investment in the field.
For land-based casinos, the GGR remittance rate will decrease to 30% as of next year. The fee will drop to 25% for integrated resorts that run online gaming as well. The chairman and CEO of Pagcor, Alejandro Tengco, clarified that integrated resorts’ lower rate is a reflection of the additional complexity of their operations.
In his remarks at the IAG Academy Summit in Manila, Tengco stated, “By lowering our licence fees, to be at par with the global industry standards, we hope to attract and keep more investors in place.” His comments underscore Pagcor’s commitment to creating a more competitive environment for gaming operators.
Addressing Market Challenges
In a separate conversation with reporters, Tengco highlighted a pressing issue: the thriving grey market. He noted, “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.” This insight reflects the challenges Pagcor faces as it attempts to regulate a sector increasingly overshadowed by unlicensed operators.
Pagcor’s decision to reduce fees aims to level the playing field, making licensed operations more attractive compared to their unregulated counterparts. The regulator hopes that by adjusting these rates, it can curb the influence of the grey market and reinvigorate the industry.
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