Andrea Domingo, head of the Philippines Amusement and Gaming Corp (PAGCOR) says about half of Philippine Offshore Gaming Operators (POGOs) have left the country to set up shop in more business-friendly environments like Cambodia, Vietnam and Laos.
As a result, government revenue from POGOs over the last six months has fallen to PHP1.6 billion ($32 million), according to ABS-CBN News. Domingo said she expects PHP4 billion in full-year income from the sector.
The mass flight was caused by several factors: the pandemic, the rising cost of doing business in the Philippines and a plan to impose a 5 percent franchise tax on overall turnover. After an outcry from the industry, an amended version is now in the nation’s House of Representatives.
The law aims to adopt a 5 percent tax on POGOs’ gross gaming revenues while requiring all foreign employees to pay taxes. There’s also a 25 percent withholding tax on foreigners employed by offshore gambling licensees and service providers.
In other iGaming news, the Philippines started regulating e-Sabong—or online cockfighting—in May, bringing in more than PHP1 billion (US$20 million) in fees from licensed operators.
