China-centric online casinos in the Philippines will incur more losses and more are expected to shut after a pandemic relief law imposed a new tax on the industry, a gaming authority official said.
The law, signed by President Rodrigo R. Duterte earlier this month, imposes a 5% franchise tax on offshore gaming operators鈥 gross bets. That鈥檚 a change from the current franchise tax imposed on gross gaming revenue, Philippine Amusement and Gaming Corp. (PAGCOR) assistant vice-president Jose S. Tria, Jr. said.
鈥淭his new formula will surely result in serious losses for Philippine offshore gaming operators,鈥 Mr. Tria said in a mobile-phone message. 鈥淲e expect them to close shop.鈥
Online casinos are already reeling from months of shutdown amid the pandemic-induced lockdown, with 40% of operators still closed, based on a from the gaming authority. Demand for office spaces could take a 鈥渟hort-lived鈥 hit as offshore gaming operators leave, the Philippine central bank said. 鈥 Andreo Calonzo/Bloomberg
