The Philippine Amusement and Gaming Corp. (PAGCOR) has officially announced a restructuring of its financial framework for the online gaming sector, introducing a mandatory “minimum guaranteed fee” (MGF).
Detailed in a memorandum dated December 15, this new policy targets accredited electronic gaming system administrators (GSAs) and gaming venue operators (GVOs). The initiative is designed to enforce fiscal discipline, ensure revenue fairness, and standardize collection processes across the industry.
Rationale and Fiscal Accountability
Jessa Mariz Fernandez, the head of PAGCOR’s electronic gaming licensing division, clarified that the new measure aligns with board-approved principles emphasizing accountability and responsibility.
The policy, ratified on December 4, addresses existing disparities in the current fee structure by pegging payments to specific minimum monthly gross gaming revenue (GGR) targets. This ensures the regulator secures a consistent baseline of revenue regardless of market fluctuations.
Phased Implementation Timeline
To allow operators to adapt, PAGCOR has devised a two-phase implementation strategy scheduled for 2026:
- First Tranche (April 1 – September 30, 2026): GSAs operating electronic casino games with a minimum monthly GGR of PHP 30 million will be subject to a monthly MGF of PHP 9 million. For operators without electronic casino offerings generating at least PHP 15 million in GGR, the fee is set at PHP 3 million.
- Second Tranche (Effective October 1, 2026): The financial requirements will increase in the fourth quarter. The MGF for electronic casino game providers rises to PHP 10.5 million based on a PHP 35 million GGR threshold. Concurrently, operators without electronic casino games will face a PHP 4 million fee pegged to a PHP 20 million revenue floor.
Industry Impact
The minimum guaranteed fee directly impacts approximately 65 GSAs currently accredited by PAGCOR. Previously, these entities remitted a percentage share of their GGR as a license condition. The introduction of the MGF introduces a fixed-cost liability, effectively transferring a portion of the financial risk to the operators.
By establishing a revenue floor, PAGCOR is compelling industry players to maintain robust operational performance to ensure profitability under the new taxation regime.
