PAGCOR To Lower E-Games Operators' Remittance Rate Starting April 1

Alejandro H. Tengco, Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR), has announced that the state gaming regulator will decrease the gross gaming revenue (GGR) remittance rate for online and on-site betting platforms beginning April 1, 2024, aiming to attract more gaming investments in the Philippines.

PAGCOR Chairman and CEO Alejandro H. Tengco delivers his keynote message to the

participants of this year’s ASEAN Gaming Summit. I Photo: PAGCOR

During his keynote address at the opening of the ASEAN Gaming Summit at Shangri-La The Fort, Chairman Tengco disclosed that the rates for online and on-site betting platforms would be reduced by an average of five percent from current levels.

"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%," he explained.

"We have gradually lowered them so that by April 1, our rates will be at par with global industry standards."

Tengco believes that this move will encourage even those operating illegally to consider obtaining licenses from PAGCOR, thus further boosting PAGCOR’s licensing and regulatory revenues.

The PAGCOR chief also highlighted three major factors anchoring the sustained growth of the local gaming industry: 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.

PAGCOR previously projected that the local gaming industry would generate Php336.38 billion in GGR in 2024.

The E-Games sector alone, which includes e-casinos, e-bingo, sports betting, and specialty games, is anticipated to contribute Php61.75 billion to the 2024 GGR, making it the fastest-growing sector for the next few years.

Licensed casinos from Entertainment City, Metro Manila, Clark, Cebu, and the Fiesta Casinos in Rizal and Poro Point are expected to contribute as much as Php256.63 billion to the 2024 GGR.

"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," Chairman Tengco remarked.

He also mentioned plans for the opening of at least one new Integrated Resort (IR) every other year, starting with Solaire North in Quezon City, scheduled to open its doors in the first half of 2024, followed by another new IR in Clark, with several more in the pipeline, including one in Cebu.

Regarding PAGCOR’s operations, Tengco stated that the planned privatization of its Casino Filipino properties will commence in the late part of 2025 or early 2026. "We need to focus on PAGCOR’s regulatory role through privatization because this will help level the playing field and revitalize the industry," he explained.

"At the same time, this will allow us to ensure safe and responsible gaming while sustaining our contributions to nation-building."

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