PAGCOR Sets New Tax Rates: 15% for Sports Betting, 30% for Virtual Sports
The Philippine Amusement and Gaming Corporation (PAGCOR) has reduced the tax rate for live sports betting operators to 15%, while keeping the rate for virtual sports at 30%, according to a recently issued memo.
This update follows a Board of Directors meeting held earlier this month, with PAGCOR confirming that the revised tax rates will be applied retroactively starting November 2025.
Lower Tax for Live Sports Betting
The new 15% tax rate marks a continued downward adjustment by PAGCOR. Previously, operators were paying 17.5% starting January 2025, which had already been reduced from an earlier 22.5% rate. This gradual decrease reflects the regulator’s effort to make the sports betting market more competitive and sustainable.
Virtual Sports Remain at 30%
While live sports betting gets a tax break, virtual sports operators will continue to be taxed at 30%, signaling PAGCOR’s differentiated approach between real-time and simulated betting markets.
Ongoing Changes in Gaming Fees
PAGCOR has been actively revising its fee structures in recent months. In December, the regulator introduced a Minimum Guaranteed Fee (MGF) for licensed online gaming operators. This effectively set tax rates at:
- 30% for e-casino operators
- 20% for other online gaming platforms, provided minimum revenue thresholds are met
According to Arden Consult, this move is seen as a “deliberate market correction” designed to discourage underreporting and improve compliance across the industry.
What’s Next for PAGCOR Rates?
More adjustments may be on the horizon. Reports suggest that PAGCOR is also reviewing tax rates for land-based casinos and gaming venues, although no final decisions have been announced yet.
These latest changes are part of broader updates to PAGCOR’s Regulatory Framework for Fees and Rates of Gaming Venue Operations, reinforcing its ongoing efforts to modernize the Philippine gaming industry.
Key Takeaway
The PAGCOR tax update highlights a clear trend: lower taxes for live sports betting to boost growth, while maintaining higher rates in other segments. For operators and stakeholders, staying updated on these changes is essential in navigating the evolving gaming landscape in the Philippines.
SOURCE: https://asgam.com/
Frequently Asked Questions:
1. What is the new PAGCOR tax rate for sports betting?
The Philippine Amusement and Gaming Corporation (PAGCOR) has lowered the tax rate for live sports betting operators to 15%, effective retroactively from November 2025.
2. What is the tax rate for virtual sports in the Philippines?
Virtual sports operators remain taxed at 30%, according to the latest PAGCOR memo.
3. When did the new PAGCOR tax rates take effect?
The updated rates are applied retroactively starting November 2025, following a PAGCOR board decision.
4. Why did PAGCOR reduce the sports betting tax?
The reduction aims to make the market more competitive, encourage compliance, and support the growth of the regulated gaming industry.
5. Are more gaming tax changes expected in the Philippines?
Yes, PAGCOR is reportedly reviewing additional tax adjustments, including those for land-based casinos and other gaming operators.
