Alejandro Tengco provided the update during a Keynote Address at the IAG Academy Summit on Tuesday, confirming license fees applied to online gaming operations would be further reduced from their current 35% down to 25% for integrated resorts and 30% for other land-based operators. This will also mean those license fees have been effectively halved from the 50% rate PAGCOR charged when Chairman Tengco was appointed to PAGCOR’s leadership role in August 2022.

The new 25% license fee rate, to be implemented by 1 January 2025, is specifically related to online GGR, although this also brings it in line with the 25% tax charged on mass gaming revenues. Junket fees currently sit at 15% for land-based operations.

“By lowering our license fees to be in line with global industry standards, we hope to attract and keep more investment in place,” Chairman Tengco said.

“It should also encourage illegal online gaming operators to abandon the grey market and hopefully embrace the mainstream. PAGCOR will likewise continue to implement rational regulatory policies, monitor our licensees’ compliance and strengthen our cooperation with other government and law enforcement agencies to crack down on persistent illegal online gaming operations.”

In delivering his keynote Address, Chairman Tengco was quick to highlight the rapid rise of the Philippines’ eGames segment – comprising eCasino, eBingo, sports betting and specialty games – which saw revenues grow by 525% year-on-year in the June 2024 quarter. PAGCOR projects eGames to generate almost Php100 billion (US$1.76 billion) in 2024, aided by the ongoing reduction in license fees.

Chairman Tengco also pointed to the “the rapid technological advances, the increasing availability and affordability of mobile gadgets and devices, and a fast-evolving consumer behaviour that is more and more embracing technology” for the sector’s rise.