PAGCOR Set to Slash Online Casino Revenue Share In A Bid To Combat Illegal Operators
Summary:
- PAGCOR will reduce its iGaming share in March to combat illegal gambling
- The rate could be slashed further to as low as 30% by 2025
- The agency is planning to launch its own online casino brand in the second half of 2024
The Philippine Amusement and Gaming Corp (PAGCOR) has announced plans to cut its share of online casino revenues to increase competitiveness within the sector and curb illegal gambling activities.
In an interview with local news outlet Philippine Inquirer, PAGCOR chair Alejandro Tengco revealed that they’re looking to reduce their revenue share to as low as 30% by 2025.
PH Online Casinos to Contribute Less from March
PAGCOR’s share in the revenues of online casinos operating in the country currently sits at 42.5%, down from the previous 50%. The agency will slash it further to 37.5% by March this year, according to Tengco. The move is aimed at combating unlicensed platforms which he said are putting the country’s regulated online casino market in jeopardy.
The PAGCOR chief stated that the government is losing an estimated PHP1 billion (US$17.8 million) a month to illegal operators, adding that the black market is continuing to flourish due to high rates imposed on licensed firms.
Tengco said the initial 50% revenue share implemented for online casinos previously resulted in about six company closures each month. However, when the rate was reduced to the current 42.5%, the number of closures dropped significantly to just one every two months.
From March, online casinos will only be required to contribute 37.5% of their revenue to the government, allowing them more room to enhance their offerings. The reduced rate is also expected to attract new operators which will make the market more competitive. This in turn will help combat unlicensed online casinos.
The PAGCOR boss is projecting the country’s total gross gaming revenue (GGR) to hit PHP336.38 billion this year, mostly driven by land-based casinos. Of that figure, just over PHP61 billion could come from the online gaming sector, Tengco said.
PAGCOR Online Casino Slated for Launch in 2H of 2024
PAGCOR’s plan to slash its online casino revenue share comes as the agency prepares for the launch of its own online casino platform, casinofilipino.com, named after the Casino Filipino chain of land-based casinos that the agency currently operates.
Tengco revealed earlier this month that the site could launch in the second half of 2024, a move that would enable PAGCOR to establish a global presence.
Carolyn DuttonAuthor
Carolyn is our legislation expert, with a background in law she is able to cover the current state of gambling around the world
