The Philippine Amusement and Gaming Corporation has announced that the gross gaming revenue remittance rate for online and on-site betting platforms will be decreased from April 1 to help “attract more gaming investments”.
Speaking at the ASEAN Gaming Summit at Shangri-La The Fort, PAGCOR Chair and CEO Alejandro H Tengco stated that rates for online and onsite betting platforms will be reduced by an average of five per cent.
The gambling regulator is hoping that the reduction will encourage those who are operating illegally in the region to apply for a licence, which in turn will help bolster licensing and regulatory revenues.
“The remittance rates should then average around 35 per cent (of GGR), which is quite significant because when we assumed office in August 2022, the prevailing remittance rate was over 50 per cent,” Tengco noted.
“We have gradually lowered them so that by April 1, our rates will be at par with global industry standards.”
Tengco also listed three factors which can help the country’s gaming industry achieve sustained growth – entry and operation of integrated casinos, the electronic games sector’s performance and the benefits from the planned privatisation of PAGCOR casinos.
PAGCOR is projecting that the gaming industry will generate PHP 336.38bn (€5.54bn) in GGR in 2024.
The e-games sector – e-casinos, e-bingo, sports betting and specialty games – is projected to show strong growth and contribute PHP 61.75bn, while licensed casinos – Entertainment City, Metro Manila, Clark, Cebu and the Fiesta Casinos in Rizal and Poro Point – are expected to produce as much as PHP 256.63bn.
Tengco noted: “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.
“We will also have at least one new IR opening every other year starting with Solaire North in Quezon City which will 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.”
Building off initial declarations made by PAGCOR last September that it seeks to become solely a gambling regulatory agency, Tengco added that Casino Filipino’s planned privatisation will begin in late 2025 or early 2026.
“We need to focus on PAGCOR’s regulatory role through privatisation because this will help level the playing field and revitalise the industry.
“At the same time, this will allow us to ensure safe and responsible gaming while sustaining our contributions to nation-building.”
