Philippines to slash gaming licence fees
The Philippine Amusement and Gaming Corporation (Pagcor) will cut gaming licence fees starting in January 2025. Pagcor chief Alejandro Tengco says reduced fees could attract more investment to the growing sector.
The head of the Philippines Amusement and Gaming Corporation (Pagcor) has announced the regulator will cut gaming licence fees starting in the new year.
Speaking at a 10 September gaming summit in Manila, Pagcor chairman and CEO Alejandro Tengco said the move was designed to grow the Philippines industry, which generated a record-breaking ā±285.27bn (Ā£3.823/ā¬4.529/$5bn) in 2023.
Growing investment in Philippines
When he took office in 2023, Tengco said, āthe grey market or underground market was doingā¦ way better than Pagcor. And licensees were closing shops, primarily because they could not compete anymore with the grey market.ā
Lower fees will put the Philippines āat par with global industry standards [and] attract and keep more investors,ā he added.
By reducing barriers to entry in the legitimate market, the move is expected to curb illegal igaming in the Philippines. Pagcor will ācontinue to implement rational and efficient regulatory policies,ā Tengco continued, and work to shut down illegal operations.
Tax on GGR also cut
On 1 January 2025, licence fees will drop from 35% to 30% for land-based licensees and 25% for resort operators that also offer igaming.
In a similar action, earlier this year the tax rate on gross gaming revenue (GGR) was reduced to 35% from 55%.
Meanwhile, Tengco anticipates that the gaming industry will reach its target of ā±335bn in GGR this year. Thatās an increase of 17.91% over 2023.
Offsetting losses from POGOs
Growing the market overall will also help compensate for the loss of Philippines Offshore Gaming Operations (POGOs).
In July, President Ferdinand Marcos banned POGOs following reports of widespread criminal activity. The market could lose at least ā±20bn annually due to the shutdown.
