In a move to strengthen the legal gaming sector and curb illegal operations, the Philippine Amusement and Gaming Corporation (PAGCOR) has reduced its fee rates for electronic games (e-games) from 35% to 30%, effective 1 January 2025.

PAGCOR Chairman and CEO Alejandro H. Tengco announced that rates for e-games operated by integrated resorts have also been lowered to 25%, accounting for the higher operational costs of brick-and-mortar operators.

“By lowering our share rates, PAGCOR is creating a more favorable regulatory environment by encouraging unregistered online gaming operators to transition to the legal market,” Mr. Tengco said.

The fees collected by PAGCOR are based on a fixed percentage of licensees’ gross gaming revenue (GGR). 

The rate cuts are expected to provide operators with more resources for marketing, prevent voluntary closures, and promote sustained growth in the sector.

Tengco noted that the gradual reduction of fees, which began in 2023, has already allowed the e-games sector to exceed its Php100 billion GGR target for 2024 as early as September. 

Prior to the reforms, fees exceeding 50% of GGR had discouraged expansions.

The reduction in share rates has also led to a significant increase in the number of licensed e-games operators, with PAGCOR issuing 1,188 licenses as of 2024, up from 1,046 in 2023. Accredited gaming service providers have grown fivefold, from 49 in 2023 to 174 in 2024.

“The gradual reduction of share rates has significantly contributed to the growth of the e-games sector, which has become a key driver of the local gaming industry,” Tengco added.

He said that the policy change has also led to a significant increase in the number of licensed E-Games operators, as many former gray market players decided to join the mainstream by securing PAGCOR licenses.

To date, PAGCOR has issued 1,188 licenses for various on-site and online gaming offerings—a 13.57% increase from the 1,046 licenses issued in 2023.

The number of accredited gaming service providers also increased fivefold, from 49 in 2023 to 174 in 2024.

We expect this trend to continue, and we are optimistic that the best is yet to come for the country’s E-Games sector,” Mr. Tengco added.