The Philippine Amusement and Gaming Corp (Pagcor) has announced plans to decrease its revenue share in the gaming industry in the Philippines. The move is aimed at making the market and casinos more competitive and reducing illegal gambling operations in the country.
Alejandro Tengco, the chairman and chief executive of Pagcor, revealed that the regulator wants to reduce its revenue share from online casinos to between 30% and 32%. This is a significant reduction from the previous 50% share and is expected to be implemented by next year.
Tengco emphasized the need to address illegal gambling, which has been a major issue in the Philippines. He stated that the agency loses about PHP 1 billion (US$17.8 million) every month due to illegal online casinos operating without the country’s license.
Furthermore, Pagcor’s efforts to decrease the revenue share have already had a positive impact. Tengco mentioned that the number of casinos closing their operations in the Philippines has decreased after the reduction in the revenue share, indicating a positive effect on the industry.
Despite the challenges posed by illegal gambling, the gaming industry in the Philippines is thriving. Pagcor is optimistic about the annual gross gaming revenue (GGR) for 2024, estimating it to reach PHP336.38 billion. Additionally, the licensed commercial casinos and electronic gaming are expected to be major contributors to the overall revenue, with an estimated revenue of PHP61.75 billion from electronic gaming in 2024.
In a bid to further boost revenue, Pagcor is also working on launching its own online casino brand, casinofilipino.com, which is expected to be introduced in the second half of 2024.
Overall, Pagcor’s plans to decrease its revenue share and address illegal gambling are aimed at bringing significant changes to the gaming industry in the Philippines, with a focus on fostering competition and driving revenue growth in the coming years.