SBC News Voice of the Sports Betting Industry
Alejandro H Tengco, the Chair and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR), has announced the reduction of gross gaming revenue (GGR) remittance rate for online and on-site betting.
The changes by the state gaming regulator are expected to come into force on 1 April with the goal of attracting more foreign investments into the Philippines’ gaming sector.
In a keynote speech presented at the opening ceremony of the ASEAN Gaming Summit at Shangri-La The Fort, Manila, Tengco announced that the new rates will see an average reduction of 5%.
“The remittance rates should then average around 35% (of GGR), which is quite significant because when we assumed office in August 2022, the prevailing remittance rate was over 50%.
“We have gradually lowered them so that by April 1, our rates will be at par with global industry standards,” Tengco said.
According to the CEO, the move will encourage even illegal operators to think about getting a PAGCOR-issued licence, further increasing the regulator’s licensing and regulatory revenues.
Data estimates from PAGCOR predict that the local gaming industry will generate around 336.38bn Philippine peso (£4.8bn) GGR in 2024.
E-games alone, consisting of e-casino, e-bingo, sports betting and specialty games, are projected to bring around 61.75bn Philippine peso (£865m) in GGR to the country’s economy.
Tengco also added that in his beliefs, the local gaming industry is anchored on three major factors: “These are the entry and operation of more integrated casinos, the strong performance of the Electronic Games sector, and the benefits from the planned privatisation of PAGCOR casinos.
“We expect gaming revenues to sustain growth this year and beyond with the increasing demand for leisure, travel and entertainment from both local and foreign tourists.”
Additional comments were also provided on PAGCOR’s planned privatisation of its Casino Filipino properties, which is planned to happen around late 2025-early 2026.
Tengco said: “We need to focus on PAGCOR’s regulatory role through privatisation because this will help level the playing field and revitalise the industry.
“At the same time, this will allow us to ensure safe and responsible gaming while sustaining our contributions to nation-building.”
