The Philippine Amusement and Gaming Corporation to Slash Gaming License Fees
Pagcor Chairman and CEO, Alejandro Tengco, made this announcement during a gaming summit held in Manila on September 10
The Philippine Amusement and Gaming Corporation (Pagcor) is set to lower gaming license fees starting in January 2025. Pagcor Chairman and CEO, Alejandro Tengco, made this announcement during a gaming summit held in Manila on September 10. Tengco emphasized that the fee reduction aims to drive investment into the country's booming gaming sector, which saw record-breaking revenues of ?285.27 billion (£3.823/€4.529/$5 billion) in 2023.
Tengco reflected on the challenges faced when he assumed office in 2023, stating:
“The grey market or underground market was doing way better than Pagcor. Licensees were closing shops because they could no longer compete with the grey market.”
He highlighted that lowering the fees will bring the Philippines in line with global industry standards, making the country more attractive to investors. By removing obstacles to entry in the regulated market, Tengco believes the initiative will help combat illegal iGaming operations. He added that Pagcor will continue enforcing rational regulatory policies while intensifying efforts to shut down illicit activities.
From January 1, 2025, land-based licensees will see their fees drop from 35% to 30%, while resort operators offering iGaming will benefit from a reduced rate of 25%. This follows a recent decision earlier in the year to cut the tax on gross gaming revenue (GGR) from 55% to 35%.
Looking ahead, Tengco expects the industry to hit a new GGR target of ?335 billion by the end of the year, marking a 17.91% increase from 2023 levels.
The Philippines is a hit destination for the gambling industry. Just this week, it was announced that Bloomberry Resorts Corp is in the final stages of acquiring land for a new casino resort in Paniman.
