Philippine Amusement and Gaming Corporation (PAGCOR) to Lower Online GGR Tax Rates
PAGCOR has announced that it will lower its license fees on integrated resorts’ online gaming revenues to 25% effective January 1st, 2025. This decision comes after PAGCOR’s Chairman, Alejandro H. Tengco, indicated that the tax rate would be lowered to 30% by January 1st last June this year, due to the success of the eGames sector. The new rate will only apply to online gaming GGR of integrated resort operators, aligning it with the current taxation on mass gaming tax rates. The lowered rate is expected to encourage illegal online gaming operators to abandon the gray market and join the mainstream.
The reduced tax rate is expected to benefit integrated resort operators such as Okada Manila, Universal Entertainment, Philippines City Of Dreams Manila, Premium Leisure Corp, Solaire Resort & Casino, and Bloomberry Resorts. According to Tengco, the move is part of PAGCOR’s efforts to implement rational regulatory policies, monitor licensees’ compliance, and strengthen cooperation with government and law enforcement agencies to crack down on illegal online gaming operations.
Singapore Passes Amendments to Casino Control Act, Future-Proofing Industry
Meanwhile, Singapore has passed proposed changes to the Casino Control Act, aimed at future-proofing the industry and allowing for cashless gaming. The amendments give the Gaming Regulatory Authority (GRA) the power to regulate all forms of gambling offered in casinos, including betting and lotteries, expanding its oversight beyond just games of chance. The bill also transfers the power of approving main shareholders in casino operators from the Gaming Authority to the Minister for Home Affairs, ensuring alignment between integrated resorts (IRs) and the government’s strategic objectives.
The GRA’s Evaluation Panel has been granted authority to consider future industry standards and market demands when conducting reviews, helping IR operators comply with anticipated regulations and reducing the risk of costly adjustments or legal issues. However, the changes do not allow for cryptocurrency to be used in casinos, due to concerns about money laundering risk. Instead, the GRA has been granted authority to allow new wagering instruments, such as virtual credits, which could potentially facilitate cashless gaming.
Thailand’s Casino Plan Receives 80% Approval in Public Hearing
Moreover, Thailand’s government has received a significant amount of support for its plan to introduce entertainment complexes with casinos, with 80% of attendees at a recent public hearing in favor of the proposal. The proposed entertainment complex aims to address the prevalence of underground betting in Thailand by offering a regulated environment for gambling. A recent Finance Ministry study suggests that the planned casino could attract a significant number of Thai gamblers, potentially up to 90% of its customers, and that up to 37 million Thai residents could potentially visit a casino.
The license fee for the casino would be THB5 billion ($148 million), with an annual fee of THB1 billion ($29 million). The casino entrance fee for Thai citizens would not exceed THB5,000 ($148) per person. The plan has faced resistance from conservative groups in the past, but supporters argue that it would help Thailand catch up with its Southeast Asian neighbors in the gaming industry.
