2 months ago
27
THE Philippine Amusement and Gaming Corp. (Pagcor) announced a further reduction in fee rates for Electronic Games (e-Games) from 35 percent to 30 percent, effective Jan. 1, 2025, to combat illegal gaming operations.
Pagcor Chairman and CEO Alejandro Tengco stated that rates for e-Games in integrated resorts were cut to 25 percent to offset brick-and-mortar overhead expenses.
DRIVING E-GAMES GROWTH Pagcor’s policy shift is a key driver of the local gaming industry. IMAGE FROM PAGCOR WEBSITE
"Lowering share rates creates a favorable regulatory environment, encouraging unregistered operators to transition to the legal market," Tengco said.
Fee rates are based on a fixed percentage of licensees' gross gaming revenues (GGR).
Tengco noted the reductions provide operators with more resources for marketing, preventing closures while ensuring growth and profitability.
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He highlighted that the e-Games sector surpassed its P100 billion GGR target for 2024 by September.
Previously, Pagcor collected over 50 percent of GGR, deterring expansions. Recent cuts include a drop to 35 percent in April 2024.
The policy shift has driven growth in the e-Games sector, a key driver of the local gaming industry.
Tengco added that licensed e-Games operators increased significantly, with 1,188 licenses issued in 2024 — a 13.57 percent rise from 2023. Accredited gaming service providers grew five-fold to 174.
"We expect this positive trend to continue," Tengco concluded.
