The newly proposed tax hike will see the Philippines have one of the highest online gambling tax rates in Asia
It was recently revealed that Bloomberry’s Solaire Resort & Casino has been cleared to legally take online bets in the Philippines, even though the system still has to pass testing by the Gaming Licensing and Development Department. Meanwhile, the respective applications of City of Dreams Manila and Okada Manila have yet to undergo evaluation.
In line with this, in a report by Asia Gaming Brief, PAGCOR is looking to set a tax rate of 42.5% on all online gaming revenue generated by land-based operators, under what will be known as the “PIGO” (Philippines Inland Gaming Operator) licence scheme, according to a source close to the matter.
On top of this, operators will pay a 5% gaming systems fee to the regulator. This will result in operators keeping around 28% of revenue gained from their online gambling operations.
However, the source indicated that this may not be the final agreed amount, but will be “very close” to what PAGCOR will end up charging land-based operators. If true, this tax hike will make the Philippines have one of the highest online gambling tax rates in Asia.
Currently, Philippines Offshore Gaming Operators (POGO) are obliged to pay a 5% tax on turnover rather than the previous 2% on revenues, since Philippines President Rodrigo Duterte passed legislation. The tax increase is linked to the effort by the government of the Philippines to bring in at least $216.7 million in additional annual funds to help counter the nationwide impact of the coronavirus pandemic.
Block Issue 5 is out:
The Block is a bi-annual publication which illuminates the cutting-edge sectors of AI, blockchain, crypto and emerging tech, with a print run of 5000 delivered to leading brands across the global industry. View our latest issue of the Block here.