The government agency charged with overseeing and regulating all gambling activities in the Philippines, Philippine Amusement and Gaming Corporation (PAGCOR), has announced its intention to reduce gross gaming revenue (GRRs) remittance rate for land-based and online wagering operations beginning April 1, 2024.
Alejandro Tengco, chairman and chief executive officer of PAGCOR, further elaborated on this matter in relation to the organization’s established strategy concerning the domestic wagering industry. In contrast to the over 50% of current rates that the current administration assumed authority over in August 2022, the new remittance rates will average 35% of GGR. This represents a significant reduction. This transition is generally driven by the desire to align with established norms in the gaming industry and worldwide standards.
It is anticipated that this action will attract new investments and enable existing illicit operators to transition to legal operations by obtaining a PAGCOR license. As a result, the corporation’s licensing and regulatory revenue is anticipated to increase. Tengco described the dynamics of the development of the local gaming industry, which were influenced by several significant factors, including the entrance of integrated casino establishments, the Electronic Games sector’s impressive performance, and PAGCOR’s intentions to privatize the latter’s casinos.
According to PAGCOR, the gross gaming revenue (GGR) of the gaming industry in the Philippines is projected to reach P336.38 billion by 2024. This figure exclusively accounts for the projected revenue yield of P61.75 billion derived from the electronic games sector. The largest portion of the GGR is anticipated to come from legal online casino sites situated in various locations, such as Entertainment City in Metro Manila, Fiesta Casinos in Rizal, and Poro Point.
Rising demand for recreational activities, travel opportunities, and amusement among both domestic and international tourists provides the foundation for the anticipated revenue growth in the gaming industry. The management also intends to open an IR in Clark during the same year as the Solaire North, which is projected to be operational within the initial half of 2024. Several other IRs, including the Cebu IR, are presently developing and are anticipated to be operational in the coming years. As part of the long-term strategy to promote tourism and sustain revenue growth, these forthcoming openings will be put into operation.
Furthermore, Tengco disclosed information concerning the impending transfer of ownership of Casino Filipino premises, which is planned for the second half of 2025 or the first half of 2026. The prime aim of the plan is to underline PAGCOR’s function as a regulatory body and ensure fairness in the industry, in addition to rejuvenation. Moreover, privatization is often regarded as a driving factor for safe and responsible gaming, making sure that PAGCOR still holds its key role in the country’s progress. Such actions of PAGCOR are open to the age of positive change in the Philippine gaming sector, where growth, equity, and sustainability are the major concerns.
