The Philippine Amusement and Gaming Corporation (PAGCOR) has announced a further reduction in Electronic Games (E-Games) fee rates, bringing them down from 35% to 30% effective January 1, 2025. This decision is part of PAGCOR’s broader initiative to curb illegal gambling and stimulate growth in the regulated sector.

According to PAGCOR Chairman and CEO Alejandro H. Tengco, the rate reduction aims to provide a more competitive environment that encourages unregistered operators to obtain licenses and join the legal market. Additionally, the fee for E-Games operated by integrated resorts has been reduced to 25% to account for the higher operational costs associated with brick-and-mortar establishments.

“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 in a PAGCOR press release.

Impact of Fee Reductions

The regulatory body collects fees based on a fixed percentage of licensees’ gross gaming revenue (GGR). Before implementing the reductions, PAGCOR charged over 50% of GGR, which deterred growth and expansion within the industry. The initial rate reduction in April 2024 brought the fees down to 35%, and the latest adjustment further eases financial pressure on operators.

Tengco highlighted that the reduced rates have already led to significant achievements within the industry. By September 2024, the E-Games sector surpassed its PHP100 billion GGR target for the year, showcasing the effectiveness of the new policy in boosting performance.

“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.

Increasing Operator Participation

The revised fee structure has resulted in a notable increase in the number of licensed operators. PAGCOR reported issuing 1,188 licenses for various on-site and online gaming operations in 2024, reflecting a 13.57% rise compared to the 1,046 licenses issued the previous year. This surge in licensing demonstrates the effectiveness of PAGCOR’s regulatory approach in attracting more legal participants.

Moreover, the number of accredited gaming service providers grew from 49 in 2023 to 174 in 2024, a remarkable five-fold increase. This expansion indicates a thriving industry with growing confidence in PAGCOR’s regulatory policies.

Looking ahead, PAGCOR remains committed to fostering a regulated and sustainable gaming market. Tengco expressed optimism about the industry’s future, emphasizing the agency’s dedication to providing a supportive environment for operators while maintaining strict regulatory oversight. “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 added.