PAGCOR Lowers Online Gaming Operator Tax Rate
The Philippine Amusement and Gaming Corporation (PAGCOR) has implemented a new reduction in tax rates for online gaming operators. It's part of a larger trend of easing regulatory fees the gaming regulator has been implementing over recent years.
LISTEN TO THIS ARTICLE:Effective January 1, the fees for electronic games (E-Games) operators have been lowered to 30%, down from 35%. Operators running online gaming platforms from integrated resorts will benefit from an even lower rate of 25%, reflecting the additional operational costs associated with maintaining physical venues alongside online services.
Related: San Miguel Corporation to Build New PAGCOR Headquarters Free of ChargeThis latest adjustment follows a series of reductions that began two years ago when the rates exceeded 50%. PAGCOR's stated aim is to create a more favorable regulatory environment that incentivizes unregistered online gaming operators to transition into the legal market. By offering lower tax rates, the gaming regulator intends to strengthen its oversight of the sector and combat illegal gaming activities that undermine the industry's integrity and economic contribution.
The tax rates collected by PAGCOR are calculated as a percentage of gross gaming revenues (GGR) generated by licensed operators. This structure allows the regulator to directly align tax collection with operator performance. The decision to reduce the rate for integrated resorts to 25% was specifically made to address the unique financial burdens faced by operators that maintain physical facilities alongside online platforms.
PAGCOR highlighted the importance of maintaining momentum in the industry, both to sustain economic growth and to ensure that legal operators can compete effectively in the marketplace. These efforts are expected to contribute significantly to the gaming industry's long-term development and its role in supporting the Philippine economy.
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Easing Up on Operators
In April 2024, PAGCOR reduced its fee rates for E-Games operators from 40% to 35%. The regulator noted at the time that the sector had demonstrated extraordinary growth. E-Games, which encompass a variety of offerings, including eCasino, eBingo, sports betting, and specialty games, saw significant year-on-year growth of 464% in the third quarter of 2024.
This growth translated to revenues of Php35.7 billion (US$610 million). PAGCOR emphasized that this success was in part due to the gradual reduction of share rates, which has bolstered the sector's expansion and its role as a major contributor to the local gaming industry.
The number of licenses issued by PAGCOR has also increased significantly as the regulator continues its efforts to expand the legal gaming sector. By early 2025, PAGCOR had issued 1,188 licenses for both on-site and online gaming operations.
This represents a 13.6% increase from the 1,046 licenses issued in 2023. Additionally, the number of accredited gaming service providers has grown substantially, rising from 49 in 2023 to 174 in 2024, a fivefold increase that reflects the growing demand for regulated gaming services in the country.
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