The Philippine Amusement and Gaming Corporation (PAGCOR) has postponed the implementation of new minimum guaranteed fees for gaming system administrators. This comes as the country’s gaming industry comes under pressure from rising operational costs linked to global oil price increases.
The adjustment comes as fuel and electricity prices climb due to ongoing geopolitical tensions in the Middle East. PAGCOR says these tensions are already affecting business activity and consumer mobility across the gaming sector.
Oil Price Surge Impacts Industry Costs
PAGCOR Chairman and CEO Alejandro Tengco said the current oil-driven cost escalation is not limited to the Philippines. He noted that gaming jurisdictions worldwide are experiencing similar economic strain.
He added that higher fuel and energy costs are filtering through the broader economy. This impacts both operators and supporting industries tied to gaming operations.
Fee Implementation Deferred by Two Months
In response, PAGCOR has deferred the rollout of new monthly Minimum Guaranteed Fees for accredited gaming system administrators (GSAs) by two months. This move is meant to ease short-term financial pressure on operators.
Under the revised structure, GSAs operating electronic casino games with a minimum gross gaming revenue (GGR) of PHP30 million will pay a first tranche of PHP9 million. This tranche covers the period from June 1 to December 31.
For GSAs without electronic casino operations and with minimum GGR of PHP15 million, the required payment will be PHP3 million. The second tranche of fees has now been postponed to January 1, 2027.
Regulatory Flexibility Amid Market Volatility
PAGCOR said the decision reflects its intent to maintain regulatory balance while responding to external economic conditions affecting the industry. The regulator emphasized that it will continue adjusting policies in line with market realities.
Responsible Gaming Remains Central
Despite the temporary easing of financial requirements, PAGCOR reiterated that responsible gaming remains a core part of its regulatory approach. The agency said it will continue prioritizing player protection while ensuring the long-term stability of the licensed gaming market.
