PAGCOR Slashes E-Games Fees To 30%

The Philippine Amusement and Gaming Corporation (PAGCOR) announced a further reduction in Electronic Games (E-Games) fee rates, lowering them from 35% to 30%, effective January 1, 2025.

As of now, PAGCOR has issued 1,188 licenses for various on-site and online gaming operations.

This move is part of PAGCOR’s efforts to combat illegal gaming operations.

PAGCOR Chairman and CEO Alejandro H. Tengco stated that fees for E-Games operated by integrated resorts have also been reduced to 25% to account for the overhead expenses incurred by brick-and-mortar operators.

“By lowering our share rates, PAGCOR is creating a more favorable regulatory environment, encouraging unregistered online gaming operators to transition to the legal market,” Tengco said.

The fees collected by PAGCOR are based on a fixed percentage of the licensees’ gross gaming revenues (GGR).

According to Tengco, the rate cuts aim to provide operators with more resources for marketing, help prevent voluntary closures, and ensure the sector’s continued growth and profitability.

The PAGCOR chief highlighted that the gradual reduction in rates allowed the E-Games sector to surpass its PHP100 billion GGR target for 2024 as early as September. Before the current reductions, PAGCOR had been collecting over 50% of GGR from licensees—a rate that deterred expansion in the industry.

The first rate cut under Tengco’s leadership was introduced in 2023, with the share rate for E-Games lowered to 35% in April 2024.

“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.

He added that the policy changes have led to a significant increase in the number of licensed E-Games operators, with many former gray-market players securing PAGCOR licenses.

As of now, PAGCOR has issued 1,188 licenses for various on-site and online gaming operations, reflecting a 13.57% increase from the 1,046 licenses issued in 2023.

The number of accredited gaming service providers also surged from 49 in 2023 to 174 in 2024—a five-fold increase.

“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 said.