The Philippine Amusement and Gaming Corporation (PAGCOR) has announced a further reduction in fee rates for Electronic Games (E-Games). Effective January 1, 2025, the rates drop from 35% to 30% for most operators and to 25% for integrated resorts to offset higher overhead costs.
PAGCOR Chairman and CEO Alejandro H. Tengco explained that the fee adjustments aim to foster a healthier gaming environment and attract unlicensed operators into the legal market. “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,” Mr. Tengco said.
These rates, calculated as a percentage of gross gaming revenue (GGR), allow operators to allocate more resources for marketing and operations. This strategy also helps prevent closures and ensures the sector’s sustained growth.
Since implementing these reductions, the E-Games industry exceeded its Php100 billion GGR target for 2024 as early as September. This success underscores the positive impact of lower fees, which previously exceeded 50% of GGR, hindering expansion.
Driving Growth in Licensing and Service Providers
The new fee structure has sparked significant growth in the number of licensed operators. PAGCOR has issued 1,188 licenses for various gaming offerings, reflecting a 13.57% increase compared to 2023. The number of accredited service providers has also surged, rising from 49 in 2023 to 174 in 2024—a fivefold increase.
Additionally, Mr. Tengco highlighted the transformative effect of the policy changes. “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,” he stated.
PAGCOR remains optimistic about the sector’s potential. By attracting former gray market operators into the mainstream and fostering growth through favorable policies, the gaming industry is poised for continued success. As Tengco emphasized, “We expect this trend to continue, and we are optimistic that the best is yet to come for the country’s E-Games sector.”
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