for early access to the latest igaming videos!
and get the latest igaming news first!
The Philippine Amusement and Gaming Corp. (PAGCOR) is set to shake up the financial landscape for online gambling operators with the introduction of a new mandatory monthly fee. Starting next year, all accredited electronic gaming system administrators (GSAs) and gaming venue operators (GVOs) will be subject to a “minimum guaranteed fee” (MGF), a move designed to standardize revenue collection and enforce stricter fiscal discipline across the sector.
Addressing Revenue Gaps
In a memorandum dated December 15, PAGCOR outlined the rationale behind the new policy, citing the need to close existing gaps in the current fee structure. According to Jessa Mariz Fernandez, the chief of the electronic gaming licensing division of PAGCOR, the measure is necessary because the board approved on December 4 principles that specify fairness, accountability, and fiscal responsibility. It is necessary because the amount payable is pegged on a minimum monthly gross gaming revenue.
Phased Implementation Strategy
The new fee system will be rolled out in two distinct phases, allowing operators time to adjust to the increased financial obligations. The first tranche, effective from April 1 to September 30, 2026, sets specific benchmarks based on the type of games offered. GSAs operating electronic casino games that generate at least P30 million in monthly GGR will be charged a monthly MGF of P9 million. For those without electronic casino games earning a minimum of P15 million GGR, the fee is set at P3 million.
The second tranche, commencing on October 1, 2026, will see these rates adjust upward. GSAs with electronic casino games generating a minimum monthly GGR of P35 million will face a monthly MGF of P10.5 million. Meanwhile, operators without such games but earning at least P20 million in GGR will be required to pay P4 million monthly. This tiered approach reflects PAGCOR’s intent to scale the fees in line with the revenue-generating potential of different gaming categories.
Impact on Accredited Operators
The policy will impact a significant number of industry players. As of December 4, PAGCOR’s accredited list included as many as 65 GSAs, all of whom currently remit a share of their GGR as a condition for their license to operate. The introduction of the MGF adds a fixed cost component to their operational expenses, shifting the financial risk partially onto the operators to meet minimum revenue targets.
Enforcing Fiscal Accountability
By mandating a minimum guaranteed return, PAGCOR is effectively setting a performance floor for the industry. Operators will now be compelled to maintain a certain level of revenue generation to remain viable, as the fee applies regardless of whether they hit the GGR targets.
As the dates for this implementation get closer by the day, the online gaming industry will be watching with great interest to see what impact this financial load has on the competitive environment in the Philippine online gaming market that has existed to date.
Source: PhilStar
