New Fee Structure Takes Effect Following Two Delays, with Higher Payments Scheduled for 2027
The Philippine Amusement and Gaming Corp (PAGCOR) has officially confirmed that its minimum guaranteed fee (MGF) regime for all accredited gaming system administrators (GSAs) took effect on July 1, 2026. This implementation follows two previous deferrals after the regulator initially planned to launch the new fee structure on April 1. PAGCOR’s Electronic Gaming Licensing Department confirmed to GGRAsia that the minimum guaranteed fees have been imposed on all accredited GSAs, supported by a memorandum issued on June 30 reminding operators of the monthly requirement.
First Tranche Fee Structure and Revenue Thresholds
Under the first tranche of the regime, running from July 1 through December 31, GSAs offering electronic casino games are required to pay a monthly minimum fee of PHP9 million (approximately US$147,320) when their gross gaming revenue (GGR) reaches at least PHP30 million for the month. Meanwhile, GSAs that do not offer electronic casino games must pay a PHP3 million monthly minimum guaranteed fee if their GGR hits at least PHP15 million during the same timeframe. PAGCOR confirmed that statements of accounts covering July would be issued to the relevant GSAs in early August, marking the first billings under the updated framework.
Increased Payments Set for January 2027
The second tranche of the fee framework is scheduled to begin on January 1, 2027. Starting then, GSAs offering electronic casino games will face a PHP10.5 million monthly minimum requirement if their GGR reaches at least PHP35 million for the month. For GSAs without electronic casino games, the monthly minimum will increase to PHP4 million if their monthly GGR reaches at least PHP20 million. These varying tiers and thresholds are structured based on the specific type of gaming services provided by each GSA.
Originally announced in December, PAGCOR designed the framework to address gaps in the previous fee structure while promoting fairness, accountability, and fiscal responsibility. The monthly minimums are intended to ensure that GSAs contribute equitably to national revenues while encouraging active and transparent operations.
Market Impact and Declining GSA Numbers
The implementation faced two successive postponements from its initial April 1 target before finally taking effect on July 1. Industry stakeholders note that the new regime could drive market consolidation. In an April interview with GGRAsia, PhilWeb Corp President Brian Ng suggested that the framework could ultimately benefit established, compliant operators, noting that a small minority of providers, roughly 15 to 20 out of 65 active GSAs at the time, accounted for about 80 percent of total GGR. Concurrently, PAGCOR’s updated records show that the total number of active GSAs declined to 60 as of July 30.
