Pagcor cuts e-game rates to encourage more investments

State-run Philippine Amusement and Gaming Corp. (PAGCOR) will reduce remittance rates for online and on-site betting platforms by next month in a bid to encourage more investments in the gambling sector.

PAGCOR chairman and CEO Alejandro Tengco said the gross gaming revenue (GGR) remittance rate of betting platforms would be cut by five percent to settle at 35 percent.

Since August 2022, PAGCOR has slowly lowered the rates from a high of over 50 percent.

“By April 1, our rates will be at par with global industry standards,” Tengco said.

“The move should encourage even those who are now operating illegally to consider securing licenses from us,” he said.

Tengco noted that this would eventually boost the gaming agency’s licensing and regulatory revenues.

Last year, the industry’s GGR went up by 33 percent to hit a record P285.27 billion amid increased operational capacity.

Given a banner 2023, Pagcor has set a higher target to reach another record P336.38 billion in GGR for 2024, up by 18 percent.

Tengco said this will be driven by the entry and operation of more integrated casinos, the strong performance of the electronic games sector and the benefits from the planned privatization of Pagcor casinos.

E-casinos, e-bingo, sports betting and specialty games are seen generating some P61.75 billion, making it the fastest growing sector over the next few years.

“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,” Tengco said.

Meanwhile, the planned privatization of PAGCOR’s Casino Filipino properties is eyed to begin by late next year or early 2026.

Tengco argued that there is a need to focus on PAGCOR’s regulatory role through privatization in a bid to level the playing field and revitalize the industry.

As mandated by law, PAGCOR is tasked to provide portions of its earnings to the Bureau of the Treasury, the Bureau of Internal Revenue (BIR), the Philippine Sports Commission and local governments hosting Pagcor casinos, among others.

PAGCOR is also tapped to provide funds for the implementation of vital laws such as the Early Childhood Care and Development program, the Sports Incentives and Benefits Act, the National Cultural Heritage Act and the Renewable Energy Act.

PAGCOR is the third biggest contributor to the Bureau of the Treasury, next to the BIR and the Bureau of Customs.