Alejandro Tengco, chairman and chief executive of the Philippine gaming regulator, says the agency is set to reduce by April 1 the licence fees for “online and onsite betting platforms”.
The licence fee – as a share of revenue – will be reduced to 35 percent by next month, “which is about 5 percent lower than what it is today,” said on Tuesday Mr Tengco (pictured), the head the Philippine Amusement and Gaming Corp (Pagcor).
Mr Tengco was speaking in Manila during a casino-industry trade event, the ASEAN Gaming Summit.
Starting from April, the operators of betting platforms in the Philippines “will remit an average rate of 35 percent,” stated the head of Pagcor.
He described the move as “quite significant” for the industry. “When I assumed office in the second half of 2022, the prevailing licence fees then were over 50 percent,” he added.
“We have gradually lowered them so that by April our rates would be at par with global industry standards,” observed the Pagcor boss. “This should encourage even those who are now operating illegally to consider securing licences, which in turn should further boost our licensing and regulatory revenues.”
Mr Tengco also said electronically-delivered gaming – e-casinos, e-bingo and online sports betting – was likely to remain the “fastest growing” segment in the Philippine gaming industry. Nonetheless, the traditional formats via the licensed commercial-sector casinos would continue to take the lead.
The head of Pagcor had said previously that the nation’s gross gaming revenue (GGR) – including non-casino operations – was likely to be PHP336.38 billion (US$6.03 billion) in 2024.
On Tuesday, he mentioned that the country’s 2023 GGR reached PHP285.3 billion, a “record compared to pre-pandemic periods”.
“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,” stated Mr Tengco. The official data for 2023 have yet to be published.
According to the Pagcor chairman, casinos at Entertainment City in Metro Manila, as well as commercial venues in Clark, Cebu and Rizal and Poro Point would “contribute as much as PHP257 billion to our GGR in 2024.”
Electronically-delivered gaming is “projected to contribute PHP61.75 billion” for the 2024 GGR, he added.
Mr Tengco said growth in the Philippine gaming industry was anchored on three major factors: “the entry and operation of more integrated resorts in the Philippines; the strong performance of the electronic gaming sector; and the benefits from the planned privatisation of Pagcor-operated casinos.”
The Pagcor boss said the privatisation of the agency’s Casino Filipino venues would start “in late 2025 to early 2026”.
“We need to focus on our regulatory role through privatisation because this will help level the playing field and revitalise the industry at the same time,” said Mr Tengco.
“This will allow us to ensure safe and responsible gaming while sustaining our contributions to nation building,” he stated. “Once fully privatised, Pagcor will derive our revenues mainly from regulatory fees and licences, as well as from our share from gross gaming revenues.”
“The effects of these growth factors should position the Philippines as one of the most attractive gaming jurisdictions in the Asia-Pacific region,” the Pagcor chairman added. “We will be continuously introducing more reforms to make us even more attractive and more competitive regarding the rest of the jurisdictions in Asia.”
