PAGCOR to reduce its cut from gaming starting April
THE Philippine Amusement and Gaming Corp. (PAGCOR) said it will lower the remittances collected from online gaming operators starting April to make the industry more attractive for potential investors.
In a statement on Tuesday, PAGCOR said it is planning to reduce the gross gaming revenue (GGR) remittance rate for online and on-site betting platforms to “attract more gaming investments to the Philippines.”
“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%,” PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco was quoted as saying in a speech.
“We have gradually lowered them so that by April 1, our rates will be at par with global industry standards.”
This would also encourage illegal operators to obtain licenses and comply with regulations, he added.
PAGCOR expects the gaming industry to post GGR of P336.38 billion. The e-games segment is expected to generate GGR of P61.75 billion.
“We expect gaming revenue to sustain growth this year and beyond with the increasing demand for leisure, travel and entertainment from both local and foreign tourists,” Mr. Tengco said.
Mr. Tengco also said that PAGCOR will begin privatizing its casino properties in late 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 added. — Luisa Maria Jacinta C. Jocson