The Philippine Amusement and Gaming Corp. (PAGCOR) plans to reduce its share of online casino revenues to enhance competitiveness and combat illegal gambling activities.
The Philippine gaming regulator disclosed the plans during an interview with the local media outlet Business Inquirer.
Alejandro H. Tengco, the Chairman and CEO of PAGCOR, mentioned that the government’s share of licensed casino revenues could decrease to 30 to 32 percent next year, down from the current 50 percent in the past.
Currently, it stands at 42.5 percent, with Tengco saying the figure would fall reduce to 37.5 percent by March of this year. He emphasized the goal of combating illegal gaming, attributing its proliferation to high charges imposed by PAGCOR on licensees.
Tengco estimated that they were losing approximately PHP1 billion ($18 million) monthly to unlicensed online casinos, though he acknowledged that this estimate was likely conservative.
The expansion of unlicensed digital casinos also exerts pressure on legitimate gambling operations.
Tengco also mentioned that he had witnessed six casino closures monthly. Since the government’s share of licensed casino revenues has reduced to 42.5 percent, it’s now one closure every two months. In essence, they are motivated to engage in healthy competition, he notes.
PAGCOR anticipates revenues from e-casinos, e-bingo, and digital sports betting will reach nearly PHP62 billion ($1.1 billion) this year, compared to over PHP58 billion ($1 billion) in 2023.
Tengco mentioned that PAGCOR is actively monitoring reports of ongoing “e-sabong” operations, which were prohibited by the government two years ago. If the administration decides to lift the ban, Tengco emphasized that reforms would still be necessary.
The Philippines generated a record PHP285 billion ($5.1 billion) in 2023 gross gaming revenue (GGR), with PAGCOR predicting it could reach PHP336 billion ($6 billion) in 2024.
