PAGCOR lowers electronic gaming fees to boost legal market

The Philippine Amusement and Gaming Corporation (PAGCOR) has reduced its fee for electronic gaming operators from 35% to 30% of gross gaming revenue (GGR), part of its ongoing push to combat illegal gambling and encourage operators to transition to the regulated market.  

For integrated resorts, fees will drop further to 25% to account for higher operational costs, PAGCOR Chairman and CEO Alejandro Tengco announced.  

“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 said.  

The latest fee cut marks the second reduction in less than a year. PAGCOR previously lowered rates from 50% to 35% in 2024, a move that has already spurred growth in the regulated gaming sector.  

Licensed operators increased by 13.6% in 2024, rising from 1,046 in 2023 to 1,188. Additionally, the number of accredited gaming service providers tripled, growing from 49 in 2023 to 174 in 2024.

Despite the lower fees, the electronic gaming sector exceeded expectations, surpassing the PHP100 billion ($1.71 billion) GGR target for 2024 by September.  

PAGCOR’s reductions have boosted growth while maintaining strong revenue inflows. Electronic gaming revenue surged 464.38% year-on-year in Q3 2024, underscoring the sector’s rapid expansion.  

“We are optimistic that the best is yet to come for the country’s e-games sector,” Tengco said, adding that the gradual fee reductions have turned electronic gaming into a key driver of the local industry.  

PAGCOR’s fee cuts are part of a broader strategy to combat illegal gambling and attract grey-market operators to the licensed market. Tengco emphasized the importance of creating a regulatory environment that balances growth with oversight.