Pagcor to cut license fees by 2025

By: Mariedel Irish U. Catilogo - 7 days ago

Effective Jan. 1, 2025, the state-run Philippine Amusement and Gaming Corp. (Pagcor) will cut its license fees collected from gaming companies in a bid to keep the industry competitive amid the proliferation of illegal online gambling firms.

Pagcor chief Alejandro Tengco said during the IAG Academy Summit on Tuesday that from the current 35 percent of gross gaming revenues, it will bring down the license fees charged brick-and-mortar gaming companies to 30 percent and 25 percent for integrated resorts that are also involved in online games.

READ: Pagcor profits P6.56B in first half of 2024

The GGR rate had already been lowered to the current 35 percent from 50 percent in 2022, when Tengco was appointed Pagcor chief by President Ferdinand Marcos Jr.

“By lowering our license fees to be a part of global industry standards, we hope to attract and keep more investors in place,” Tengco said.

He added that the move would help curb illegal online game operations in the country as this would encourage illegal operators to engage the mainstream.

“Pagcor will likewise continue to implement rational and efficient regulatory policies, monitor our license fees compliance, and strengthen partnerships with other government and law enforcement agencies to front down against persistent illegal online gaming operations,” he said.

Despite the closure of Philippine offshore gaming operators as ordered by Marcos, Tengco stressed that Pagcor continued to find and capitalize opportunities which led to strong growth of the agency.

Pagcor is the third largest contributor to the Bureau of the Treasury, following the Bureau of Internal Revenue and the Bureau of Customs.