The Philippine Amusement and Gaming Corporation (PAGCOR) has announced a significant adjustment to its tax structure for the e-gaming sector, lowering the gross gaming revenue (GGR) share for live sports betting operators to 15 percent.
The new rates, outlined in a January 19 memo from PAGCOR’s Electronic Gaming Licensing Department, took effect retroactively starting from the November 2025 billing cycle. This move is part of the amended “Regulatory Framework for Fees and Rates on Gaming Venue Operations,” which was approved by the board earlier in the month.
Lower Fees for Live Sports
The adjustment marks a continued trend of reducing fees to encourage growth in the sector. The 15% rate is a decrease from the 17.5 percent rate established in January 2025, and a significant drop from the 22.5 percent rate applied in mid-2023.
This reduction aims to alleviate financial pressure on operators while ensuring a consistent revenue stream for the regulator. The clarity provided by the memo helps stabilize the market, offering operators a predictable cost structure as the industry expands.
Virtual Sports Rate Remains Steady
While live sports betting saw a cut, the GGR share for virtual sports operations remains unchanged at 30 percent. This rate has been in place since January 2025, following a substantial reduction from the 41.25 percent high seen in August 2023.
By maintaining the 30% threshold, PAGCOR provides stability for the virtual segment, allowing providers to plan long-term strategies without the volatility of sudden rate hikes.
Broader Regulatory Reforms
The updated tax fee structure is part of PAGCOR’s broader effort to standardize collections across the electronic gaming landscape. In addition to the GGR adjustments, a separate directive mandates that all accredited gaming system administrators must pay a minimum guaranteed monthly fee starting April 1, 2026.
This layered approach ensures reliable inflows for the state-run regulator regardless of monthly market fluctuations, solidifying its oversight in a booming digital betting market.
