Philippine gaming regulator (PAGCOR) has further reduced the fee rates charged by all electronic gaming (E-Games) operators to 30% from 35% and to 25% for local companies.
The rate cuts took effect from January 1, 2025, and follows a series of previous cuts from an initial rate of over 50% two years ago. The regulator explained that this is part of its efforts to crack down on illegal gaming operations.
PAGCOR Chairman and CEO Alejandro Tengco said: “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.”
He also noted that the lower fee rate of 25% for integrated resorts was intended to offset the overhead costs incurred by traditional casino operators.
The fee rates charged by PAGCOR are based on a fixed percentage of licensees’ gross gaming revenue, or GGR, Tengco added.
The regulator had previously cut e-gaming fee rates from 40% to 35% in April 2024, while touting the sector’s massive growth. E-gaming, which includes eCasino, eBingo, sports betting, and specialty gaming, grew 464% year-on-year in 3Q24 alone to PHP35.7 billion (US$610 million).
“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 noted.
As of early 2025, PAGCOR had issued 1,188 licenses for various in-person and online gaming, up 13.6% from the 1,046 licenses issued in 2023. The number of accredited gaming service providers has also increased fivefold from 49 in 2023 to 174 in 2024.
“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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