The Philippine Amusement and Gaming Corp (Pagcor) is preparing for major changes in the leadership of the gaming industry in the Philippines. Chairman and chief executive Alejandro Tengco announced that Pagcor will be reducing its revenue share in order to regulate the market and make it more competitive.
The revenue share earned by Pagcor is deducted from the online casinos operating in the Philippines. The reduction in this share is aimed at promoting competition in the industry and addressing the issue of illegal gambling operations in the country. Tengco plans to decrease the share from the current 42.5% to between 30% and 32%. This is a significant change from the previous 50% share that the regulator used to charge.
Tengco emphasized the importance of reducing the revenue share to combat illegal gaming, which he believes has proliferated due to the high fees charged by Pagcor to licensees. A recent research revealed that the agency loses approximately PHP 1 billion (US$17.8 million) every month due to illegal online casinos that are operating without a license. This has put immense pressure on both legal and illegal casinos in the country.
Despite the challenges, the gaming industry in the Philippines is expected to thrive. Pagcor anticipates the annual gross gaming revenue for 2024 to reach PHP336.38 billion, with non-casino operations playing a significant role. Licensed commercial casinos and electronic gaming are projected to be major contributors to the overall revenue, with an estimated PHP61.75 billion in revenue from electronic gaming in 2024.
In addition to these developments, Pagcor is working on launching its own online casino brand, casinofilipino.com, in the second half of 2024. This move is expected to further boost the revenue generated by the gaming industry in the country. Overall, the reduction in revenue share and the introduction of new initiatives are poised to bring significant changes to the gaming industry in the Philippines.