State-run Philippine Amusement and Gaming Corp (Pagcor) says the new 30-percent rate applicable to operators of electronically-delivered games – referred to as e-Games – has been effective since January 1, 2025. The reduction in the rate is part of the agency’s “efforts to combat illegal gaming operations,” by ensuring service-providers keep to the regulated sector, said the country’s regulator in a Monday press release.

As of the same date, fees for e-Games operated by integrated resorts in the Philippines were reduced to 25 percent, “to compensate for overhead expenses incurred by brick-and-mortar operators,” stated the agency.

The announcement quoted Alejandro Tengco, Pagcor’s chairman and chief executive, as saying: “By lowering our share rates, Pagcor is creating a more favourable regulatory environment by encouraging unregistered online gaming operators to transition to the legal market.”

The regulator said the fee rates being collected from operators are based on a fixed percentage of the licensees’ gross gaming revenues (GGR).

The Pagcor boss said the rate cuts would provide operators with more resources for marketing, while helping prevent voluntary closures and ensuring the sector’s continued growth and profitability, according to the announcement.

Mr Tengco observed that the gradual reduction in rates enabled the e-Games sector to surpass, as early as September last year, the PHP100-billion (US$1.71-billion) GGR target for full-year 2024.

The licence fee – as a share of revenue – was cut to 35 percent in April last year. The rate used to be above 50 percent in 2022.

Mr Tengco stated: “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.”

The policy change, according to the release citing Mr Tengo, had led to a “significant increase” in the number of licensed e-Games operators as a number of “former grey market players decided to join the mainstream by securing Pagcor licences”.

Pagcor said it issued 1,188 licences last year for “various on-site and online gaming offerings,” a circa 13.6-percent increase from the 1,046 licences issued in 2023.

“The number of accredited gaming service providers also increased five-fold from 49 in 2023 to 174 in 2024,” noted the agency.

Mr Tengco said: “We expect this trend to continue, and we are optimistic that the best is yet to come for the country’s e-Games sector.”

The e-Gaming segment recorded GGR of nearly PHP89.08 billion in the first nine months of 2024, up 502.8 percent year-on-year, according to official data. The segment generated GGR of PHP35.71 billion in the third quarter alone,  a 464.38-percent increase from a year earlier.