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Gaming regulator PAGCOR says regulatory fees charged to Philippine Offshore Gaming Operators (POGOs) have been cut nearly in half since the online gambling industry was granted permission to resume it in May.
According to Atty. Jose Tria, Deputy Vice President of PAGCOR, the department had charged monthly fees of around Php600 million per month, but that number is now closer to Php300 million and “should have been lower if it weren’t for the guaranteed minimum fees that allow PAGCOR impose higher fees regulations than [the usual] 2% of the GGR of POGO ”, the Investigator reported.
POGOs were granted permission to resume operations in May after a seven-week shutdown due to COVID-19, yet only 32 out of 60 licensed POGOs have so far met the requirements to operate again, and only then have they 30% of its capacity according to COVID regulations. Of the 218 accredited POGO service providers, only 111 are currently operational.
Tria added that of the 60 POGOs licensed as of early 2020, five had already canceled their licenses and five more were suspended, while 42 service providers have requested to have their accreditation canceled, due to more severe tax policies and general operational difficulties in means of COVID. 19.
There have also been reports of a significant reduction in Manila office leases in recent months as a result of the POGOs leaving the country, with real estate consultancy Colliers stating that about 10% of all leasable office space, around of 1 million square meters, in Manila was occupied by online gaming companies.
