In a significant move to support the stability of the local electronic gaming sector, the Philippine Amusement and Gaming Corporation (PAGCOR) has officially announced a two-month deferment for its new mandatory fee (MGF) system.
Originally slated to commence on April 1, the rollout for gaming system administrators (GSAs) has been pushed back to June 1, 2026, in direct response to the ongoing national economic challenges.
A Phased Approach to Fiscal Responsibility
The revised timetable, approved during a PAGCOR board meeting on March 26 and detailed in a Monday memorandum, provides a crucial buffer for the country’s 65 accredited GSAs. The transition is divided into two distinct tranches designed to align fee obligations with actual revenue performance.
Under the updated First Tranche (June 1 – Dec 31, 2026):
- GSAs with Electronic Casino Games: Monthly MGF of PHP 9 million (approx. US$149,000), contingent on a minimum monthly Gross Gaming Revenue (GGR) of PHP 30 million.
- GSAs without Electronic Casino Games: Monthly MGF of PHP 3 million, provided monthly GGR reaches at least PHP 15 million.
The Second Tranche, which was originally set for October 2026, has also been rescheduled to begin on January 1, 2027. During this phase, high-earning electronic casino providers will see their monthly obligation rise to PHP 10.5 million for GGR thresholds exceeding PHP 35 million.
Economic Headwinds Drive Policy Shifts
PAGCOR’s decision to prolong the mandatory fee reflects the broader economic pressures currently facing the Philippines. The government has recently implemented drastic energy-saving measures, including flexible four-day workweeks for state employees, as it navigates a complex fiscal period.
By delaying these mandatory payments, the regulator aims to ensure the long-term sustainability of the online gaming framework without compromising the rigorous standards of the sector.
While the timeline has been reset, the underlying structure of the GGR-linked fee regime remains intact. For the accredited operators, this extension provides necessary breathing room to calibrate their financial models ahead of the new compliance era.
