The Philippine Amusement and Gaming Corp. (Pagcor) is further reducing its gross gaming revenue (GGR) remittance rate for online and on-site betting platforms next year to keep the industry at par with global standards and to encourage more players to legitimize their businesses.
“By Jan. 1, 2025, I wish to announce that we are bringing down the rates further. By then, we are bringing down our license fees to 30 percent for our brick-and-mortar licenses, and down to 25 percent for integrated resorts who are also involved in online gaming,” said Alejandro Tengco, Pagcor chairman and chief executive officer, in his speech at the Inside Asian Gaming Academy Summit held at the Newport World Resorts yesterday.
“By lowering our license fees to be a part of the global industry standards, we hope to attract and keep more investors in place. It should also help curb illegal online gaming operations so that they abandon the gray market and hopefully embrace the mainstream,” Tengco added.
Pagcor significantly reduced its rate shares from online and on-site betting platforms since the early part of 2024.
Last April 1, the GGR remittance rate was brought down to 35 percent.
This is significantly lower compared to the 55 percent prevailing rate when Tengco assumed office in August 2022.
“The observation I made upon my assumption in the office was that the gray market or the underground market was doing so well, way, way better than Pagcor,” Tengco told reporters at the sidelines of the event.
“Licensees were closing shop, primarily because they could not compete anymore with the market,” he added.
Tengco said that in other jurisdictions, the rate is about 30 percent to 35 percent.
“The numbers will show how successful the decision to reduce was, primarily because, one, closures of existing licensees are almost zero. When I assumed office, the revenue GGR in 2022 was about P12.8 billion GGR. This year, we might hit about P100 billion,” Tengco said.
Tengco said many industry players operating in the gray market are coming forward to register.
He said Pagcor will continue to implement rationalized regulatory policies, monitor licensees compliance and strengthen partnerships with other government and law enforcement agencies to crack down against persistent illegal online gaming operators.
