In a move set to transform the Philippine gaming landscape, the Philippine Amusement and Gaming Corporation (PAGCOR) announced a notable reduction in operator fees starting from April 1. This strategic decision, unveiled by Alejandro Tengco, PAGCOR's chairman and CEO, on March 19, aims to make the Philippines an even more attractive hub for gaming operators. The average fee reduction of 5% is anticipated to draw more operators to the country, aligning remittance rates with global standards.

Strategic Fee Adjustments

A New Era for Operators: The revised rates will see operator remittances average around 35% of Gross Gaming Revenue (GGR), a substantial decrease from the over 50% rate that was in effect when Tengco's administration began in August 2022. This adjustment will foster a more competitive gaming environment and encourage illegal operators to seek official licenses under PAGCOR's regulation.

Driving Growth: Tengco emphasized the pivotal role of integrated casinos, the electronic games sector, and the impending privatization of PAGCOR casinos in the overall growth of the Filipino gaming market. These elements are projected to be critical drivers in the industry's expansion.

Towards Privatization

Transitioning to Regulatory Focus: The announcement during 2023 of PAGCOR's shift to a purely regulatory entity by late 2025 marks a significant milestone, paving the way for the privatization of its casino operations. This long-anticipated move is expected to enhance investment opportunities and facilitate advancements and innovation within the sector.

Addressing Misinformation: Recent disinformation surrounding the privatization process, particularly concerning the supposed ?500m renovation of the Casino Filipino branch in Angeles City, was firmly refuted by Tengco. He clarified that renovation costs would be borne by the lessor, dispelling rumors of PAGCOR's financial involvement in the preparations for privatization.

Innovative Steps Forward: Additionally, PAGCOR's foray into the iGaming sphere with the launch of Casinofilipino.com in the first quarter of 2024 further demonstrates the organization's commitment to adapting and growing in line with industry trends and technological advancements.

As PAGCOR gears up for these transformative changes, the operator fee reduction begins a broader strategy to enhance the Philippines' position as a leading gaming destination in Asia. PAGCOR sets the stage for a prosperous future in the Philippine gaming industry by focusing on regulatory excellence and fostering a healthy, competitive market.