Philippine gaming regulator PAGCOR has further reduced the fee rates it charges operators of electronic games (E-Games) to 30%, down from 35%, and to a new low of 25% for those running online gaming out of an integrated resort.
The latest reduction in rates took effect from 1 January 2025 and follows a series of previous reductions from an initial rate of more than 50% two years ago. It is, the regulator explained, part of its efforts to combat illegal gaming operations.
“By lowering our share rates, PAGCOR is creating a more favorable regulatory environment by encouraging unregistered online gaming operators to transition to the legal market,” said PAGCOR Chairman and CEO Alejandro Tengco, who noted that the lower 25% fee rate for integrated resorts was to compensate for overhead expenses incurred by brick-and-mortar operators.
The fee rates being collected by PAGCOR is based on a fixed percentage of the licensees’ gross gaming revenues or GGR, Tengco added.
The regulator previously reduced its fee rates for E-Games from 40% to 35% in April 2024 while touting the sector’s massive growth. E-Games – comprising comprising eCasino, eBingo, sports betting and specialty games – grew by 464% year-on-year in 3Q24 alone to Php35.7 billion (US$610 million).
“The gradual reduction of share rates has significantly contributed to the growth of the E-Games sector, which has become a key driver of the local gaming industry,” Tengco said.
PAGCOR explained that it has issued 1,188 licenses for various on-site and online gaming offerings as of early 2025, a 13.6% increase from the 1,046 licenses issued in 2023. The number of accredited gaming service providers also increased five-fold from 49 in 2023 to 174 in 2024.
“We expect this trend to continue, and we are optimistic that the best is yet to come for the country’s E-Games sector,” Tengco said.
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