PAGCOR reduces e-games fee to entice illegal operators to go legit

THE Philippine Amusement and Gaming Corp. (PAGCOR) further reduced the fee paid by electronic games (e-games) operators to 30% of revenue to further encourage underground gaming operators to become licensees.

The fee had earlier been reduced to 35% in April.

In a statement, PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said that the rate on e-games operated by integrated resorts was also slashed to 25% “to compensate for overhead expenses incurred by bricks-and-mortar operators.”

“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 added.

Mr. Tengco said that the rate cuts allow operators to keep more funds for marketing and ensure continued growth.

He said the gradual cuts, initiated in 2023, come after e-games surpassed their P100-billion gross gaming revenue (GGR) target as early as September last year.

PAGCOR used to charge 50% of GGR from licensees, which slowed expansion.

“The gradual reduction of share rates has significantly contributed to the growth of the e-games sector, which has become a key driver of gaming industry growth,” Mr. Tengco said.

The regulator said previous cuts increased the number of licensed e-games operators after former unlicensed operators decided to embrace regulation.

To date, PAGCOR has issued 1,188 licenses for on-site and online gaming, up 13.57% from the 1,046 licenses issued in 2023.

The number of accredited gaming service providers has increased to 174 in 2024 from 49 a year earlier.

“We expect this trend to continue, and we are optimistic that the best is yet to come for the e-games sector,” he said. — Aubrey Rose A. Inosante