Pagcor will revoke reduced gambling license fees

Fees reduction benefited gaming firms Travellers International Hotel Group, Inc., Bloomberry Resorts and Hotels, Inc., MCE Leisure (Philippines) Corp. and Tiger Resorts Leisure and Entertainment, Inc.

The Philippines.- Philippine Amusement and Gaming Corp. (Pagcor) will revoke the reduced license fees temporarily given to four casino operators at the Entertainment City. Thse fees reduction benefited gaming firms Travellers International Hotel Group, Inc., Bloomberry Resorts and Hotels, Inc., MCE Leisure (Philippines) Corp. and Tiger Resorts Leisure and Entertainment, Inc.

Pagcor Chairperson Andrea D. Domingo explained that the Commission on Audit (COA) has already warned the gaming regulator about the imposition of special rates for some casinos, which cost the government a significant amount in foregone income.

“As soon as we can,” said Domingo when asked how soon they could reinstate the original rates. “We are now preparing the necessary correspondence.” However, Domingo also commented that the cancellation of the lowered fees will require ratification by the new Pagcor board. “Since that decision was decided by the previous board, my decision has to be ratified by the present board,” said Domingo.

Back in May 2014, Pagcor temporarily lowered the license fees to be paid by gambling casinos at Entertainment City in Pasay after the Bureau of Internal Revenue (BIR) imposed a 30 percent income tax on gaming companies.

According to Domingo gambling casino operators now have to honour their contract with Pagcor and pay the appropriate license fees initially agreed between the regulator and the private entities.

Domingo added that Pagcor, as a state owned and controlled company, is mandated by law to follow the order by government auditors.