Pagcor Reduces e-Games Fees
State-run Philippine Amusement and Gaming Corporation (Pagcor) has introduced a new 30-percent fee rate for operators of electronically-delivered games, or e-Games, effective January 1, 2025. The reduction is part of Pagcor’s broader strategy to combat illegal gaming activities by incentivizing service providers to operate within the regulated sector.
Lower Fees to Encourage Compliance
According to Pagcor’s chairman and CEO, Alejandro Tengco, the revised fee structure is designed to foster a more favorable regulatory environment and attract unregistered online gaming operators to the legal market.
Additionally, integrated resorts in the Philippines now benefit from a reduced 25-percent fee to offset their operational costs, recognizing the overhead expenses associated with brick-and-mortar operations.
Fee rates for e-Games are calculated based on a fixed percentage of gross gaming revenue (GGR), and the gradual reduction over recent years has provided operators with additional resources for marketing and operational sustainability. Tengco emphasized that the changes would help prevent business closures and ensure the continued expansion of the industry.
Surge in Revenue and Licensing
The policy adjustments have contributed to substantial growth in the e-Games sector, which exceeded its PHP100-billion (USD 1.71-billion) GGR target for 2024 by September. This growth follows a series of rate reductions, with the fee previously cut to 35 percent in April 2024, down from over 50 percent in 2022.
Pagcor reported issuing 1,188 licenses for various on-site and online gaming operations in 2024, marking a 13.6 percent increase compared to the 1,046 licenses granted in the previous year. Additionally, the number of accredited gaming service providers grew significantly, rising from 49 in 2023 to 174 in 2024.
Positive Outlook for the e-Games Sector
The e-Gaming segment recorded GGR of nearly PHP89.08 billion in the first nine months of 2024, reflecting a remarkable 502.8-percent year-on-year growth. In the third quarter alone, the segment generated PHP35.71 billion in revenue, representing a 464.38-percent increase from the same period in the previous year.
Looking ahead, Tengco expressed confidence in the sector’s future, citing technological advancements and the increasing popularity of mobile gaming as key drivers of sustained growth. He reiterated that the shift toward online platforms would shape the future of the gaming industry in the Philippines.
