The Philippine Amusement and Gaming Corp. (PAGCOR) is set to introduce a new mandatory fee framework for licensed online gambling operators. This marks a significant shift in how revenues are collected from the country’s e-gaming sector. Beginning next year, all accredited electronic gaming system administrators (GSAs) and gaming venue operators (GVOs) will be required to pay a monthly Minimum Guaranteed Fee (MGF), regardless of their actual earnings.
The move aims to standardize regulatory revenue. It also seeks to strengthen fiscal discipline and close gaps in the existing fee structure governing electronic gaming operations.
PAGCOR Targets Revenue Gaps in Current Fee Model
In a memorandum issued on December 15, PAGCOR explained that the new policy was approved by its board on December 4. This was part of broader principles focused on fairness, accountability, and fiscal responsibility. According to Jessa Mariz Fernandez, chief of PAGCOR’s Electronic Gaming Licensing Division, the existing framework allowed discrepancies in operator contributions due to reliance solely on gross gaming revenue (GGR) percentages.
Under the revised system, payable fees will now be anchored to a minimum monthly GGR threshold. This ensures PAGCOR receives a baseline level of revenue from each licensed operator.
Two-Phase Rollout Beginning in 2026
To ease the transition, PAGCOR will implement the Minimum Guaranteed Fee in two phases, starting in 2026.
The first phase will run from April 1 to September 30, 2026. During this period, GSAs offering electronic casino games with a minimum monthly GGR of PHP 30 million will be required to pay an MGF of PHP 9 million per month. Operators without electronic casino games but generating at least PHP 15 million in monthly GGR will face a PHP 3 million monthly fee.
The second phase will begin on October 1, 2026, introducing higher thresholds and fees. GSAs with electronic casino games earning a minimum of PHP 35 million in monthly GGR will be subject to a PHP 10.5 million monthly MGF. Operators without electronic casino offerings but reaching at least PHP 20 million in monthly GGR will be required to pay PHP 4 million per month.
PAGCOR said the tiered structure reflects the differing revenue potential across game verticals while gradually increasing operator obligations.
Financial Impact on Licensed Operators
As of December 4, PAGCOR had accredited 65 GSAs. All of them currently remit a percentage of their GGR as part of their licensing conditions. The introduction of a fixed monthly MGF adds a new cost layer, shifting more financial risk onto operators. This is particularly significant during periods of lower performance.
Under the new framework, operators will be required to meet the minimum fee regardless of whether they achieve the designated GGR benchmarks. This effectively sets a financial floor for continued operation.
Raising the Bar for Fiscal Accountability
By enforcing a minimum guaranteed return, PAGCOR is signaling a stricter regulatory stance on online gaming operations in the Philippines. The policy is expected to push operators toward greater efficiency and consistent revenue generation. It also ensures more predictable income for the regulator.
As the implementation timeline approaches, industry stakeholders will be closely monitoring how the new fee structure reshapes competition. Market consolidation and long-term sustainability within the Philippine online gambling sector will also be observed closely.
