On March 19th, Alejandro Tengco, the chairman and CEO of PAGCOR, announced a strategic move aimed at attracting operators to the Philippines. He revealed plans to reduce the remittance rates by an average of 5%. Tengco explained that this adjustment is significant, aiming to bring the remittance rates down to around 35% of Gross Gaming Revenue (GGR), aligning them with global industry standards by April 1st. This shift is part of PAGCOR’s efforts to encourage illegal operators to apply for licenses under their jurisdiction.
Tengco also outlined three key factors that will drive growth in the Filipino gaming market: the expansion of integrated casinos, the strong performance of electronic gaming, and the anticipated benefits from the planned privatization of PAGCOR casinos. The privatization of PAGCOR’s casinos is scheduled for late 2025, allowing ample time for the regulator to address any implications for those affected by the decision.
The decision to privatize PAGCOR’s casino business was initiated following the announcement in September that PAGCOR would transition to a “purely regulatory” body. This move had been under consideration for some time, with PAGCOR previously expressing intentions to privatize its casino business to enable more flexibility in investment, facilitating expansions, upgrades, and innovations.
Addressing recent rumors surrounding the privatization, Tengco clarified that PAGCOR would not be spending any funds on renovating its Casino Filipino branch in Angeles City. Contrary to speculation, the renovation costs will be covered by the lessor, as PAGCOR does not own the building. Tengco dismissed the allegations of spending ₱500m on renovations, emphasizing PAGCOR’s commitment to prudent financial management.
In July 2023, PAGCOR confirmed its entry into the online gaming sphere with the planned launch of Casinofilipino.com in the first quarter of 2024. This move underscores PAGCOR’s adaptation to evolving trends in the gaming industry and its commitment to expanding its presence in both traditional and online gaming markets.
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