written and last updated by
Sam Smith at
06 Jun 2024
Journalist, Editorial Department
Alejandro Tengco, the chairman and CEO of the Philippine gaming regulator PAGCOR, has announced a reduction in licensing fees for the iGaming industry. According to Tengco, by January 1, 2025, the rate for online gaming operators will be set at 30%.
Tengco noted that when he took over as head of the regulatory body, he observed a significant number of voluntary closure requests from iGaming operators each week. To reverse this trend, it was essential to ensure that the government charged a fair rate to gaming companies. "We aim not only to encourage existing licensees to continue their operations but also to motivate others to consider investing in the sector. I went against the grain, but I believe it was the right decision," Tengco stated.
The licensing fee is calculated as a percentage of the gaming company's revenue. Earlier this year, the rate was reduced to 35%, down from 50% in 2022. According to the PAGCOR chairman, the new fee will be highly competitive and aligns with global standards regarding commissions charged in other regions. Tengco expressed confidence that this move will attract more companies to do business and invest in the Philippine gaming industry.
While Tengco is not currently considering further reductions in the rates, he has not ruled out the possibility. He emphasized that this approach helps existing operators maintain a steady flow of business.
In the first quarter of 2024, the Philippine gaming industry reported a gross income of 81.7 billion pesos (approximately $1.4 billion), marking an 18.5% increase year-on-year. Notably, the online gaming sector generated a record 22.5 billion pesos (nearly $400 million), improving its performance from 2023 by more than six times. Tengco remarked that the revenue levels in this market continue to exceed expectations.
The PAGCOR chairman also confirmed that the regulator has implemented a soft moratorium on new applications for iGaming operators. "Our department responsible for electronic games is simply overwhelmed with the number of requests from organizations wishing to become operators or service providers. We are not considering any applications that were not submitted before the moratorium began. I’m not saying we will never issue licenses again; I just want the department to focus on existing requests," Tengco explained.
It is worth noting that PAGCOR's revenue grew by 42% in the first quarter of 2024.
