The Chairman of the Philippines gaming regulator (PAGCOR) has expressed confidence that eGames sector growth will continue this year, noting “we are optimistic that the best is yet to come”.
In a release by the Philippine Amusement and Gaming Corporation (PAGCOR) on Monday, the group highlighted the January 1st implementation of a reduced taxation rate of 30 percent on eGames operators (down from 35 percent). This tax rate further falls to 25 percent for eGames operated by integrated resorts.
While not providing specific data on how well the sector is doing since the reduction, Alejandro H. Tengco indicated that “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 had initially divulged the tax drop at G2E Asia in Macau in June of 2024.
Third quarter gaming revenue results revealed by PAGCOR in November showed that eGames revenue topped PHP35.71 million ($606.94 million), even as overall GGR hit a record PHP94.61 billion ($1.6 billion). That means eGames revenue grew by 464.38 percent yearly, something Tengco previously described as “phenomenal”.
The drop in taxation rates has caused a strong increase in the number of PAGCOR-licensed eGames operators, with a total of 1,188 licenses for on-site and online gaming offerings, up by 13.57 percent since 2023.
Accredited gaming service providers increased five-fold, to 174 by end-2024.
Tengco has justified the rate cuts by saying that they would allow operators more marketing resources, help prevent voluntary closures and ensure the sector’s ongoing growth and profitability.