The Philippines’ growing domestic online gaming industry is now the country’s largest gaming tax contributor, with regulator PAGCOR having collected Php28 billion (US$490 million) in tax from the online sector in 3Q24 alone, according to investment bank Morgan Stanley.
In a note, Morgan Stanley analysts said that, based on PAGCOR numbers, Philippines online gaming’s annualized gaming revenues in Q3 was tracking at US$2.4 billion, equivalent to 70% of land-based GGR.
However, tax collection exceeded land-based due to its higher tax rate of 35% – even through this has been gradually reduced from a rate of 50% two years ago.
The analysts also observed that there is more competition to come given PAGCOR’s plans to further reduce the tax it charges on domestic online gaming GGR. As reported by Inside Asian Gaming, the license fees applied to online gaming operations will from 1 January 2025 be further reduced to 25% for integrated resorts and 30% for other land-based operators, bringing it closer into line with land-based GGR which is charged at 25% for mass gaming and 15% for junket.
Morgan Stanley pointed out that leading B2C online gaming operator DigiPlus now holds 50% of domestic market share and with around 30 million registered users has now surpassed Solaire operator Bloomberry Resorts Corp on both GGR and EBITDA.
Bloomberry will, however, launch its own online gaming app in 3Q25 that will “likely” be under a different brand than its existing Solaire app with a view to targeting different clientele, Morgan Stanley said.
PAGCOR has been heavily touting the growth of the domestic online gaming, also known as e-Games, this year, comprising eCasino, eBingo, sports betting and specialty games.
This has been in stark contrast to the Philippine Offshore Gaming Operators (POGO) industry, which the government has been actively winding down in recent months with a view to implanting a full ban as of 1 January 2025.
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