The head of the Philippines Amusement and Gaming Corporation (Pagcor) has announced the regulator will cut gaming license 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 ₱285.27bn (£3.823/€4.529/$5bn) in 2023.
Growing investment in Philippines
When he took office in 2023, Tengco said, “the grey market or underground market was doing … way better than Pagcor. And licensees were closing shops, primarily because they could not compete anymore with the grey market.”
Lower fees will put the Philippines “at par with global industry standards, (and) attract and keep more investors,” he added.
By reducing barriers to entry in the legitimate market, the move is expected to curb illegal iGaming in the Philippines. Pagcor will “continue to implement rational and efficient regulatory policies,” Tengco continued, and work to shut down illegal operations.
Tax on GGR also cut
On 1 January 2025, license fees will drop from 35% to 30% for land-based licencees 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 ₱335bn in GGR this year. That’s 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 ₱20bn annually due to the shutdown.
Original article: https://igamingbusiness.com/casino/land-based-casino-regulation/philippines-to-slash-gaming-license-fees/
