The Philippine Amusement and Gaming Corporation (PAGCOR) has announced plans to update financial requirements for online gambling operators by introducing a mandatory monthly fee. Starting next year, all accredited electronic gaming system administrators (GSA) and gaming venue operators (GVO) will be required to pay a “minimum guaranteed fee” (MGF). The new measure aims to streamline revenue collection and strengthen financial oversight in the sector.
Optimizing Revenue Structure
In a memorandum dated December 15, PAGCOR explained the rationale behind the initiative, highlighting the need to close gaps in the current fee structure. According to Jessa Mariz Fernandez, head of PAGCOR’s online gaming licensing division, the decision is based on principles of fairness, accountability, and financial responsibility, approved by the board of directors on December 4. She noted that the fee will be calculated based on the minimum monthly gross gaming revenue (GGR).
Phased Implementation of the New System
The rollout of the new fee structure will be carried out in phases to give operators time to adjust to the increased financial obligations.
The first phase, from April 1 to September 30, 2026, will differentiate fees based on game categories. GSAs operating electronic casino games with a monthly GGR of at least 30 million PHP ($535,000) will be required to pay an MGF of 9 million PHP ($160,000) per month. For operators without electronic casinos achieving a monthly GGR of at least 15 million PHP ($270,000), the fee is set at 3 million PHP ($53,000) per month.
The second phase, starting October 1, 2026, will see fees increase. GSAs with electronic casinos generating a minimum monthly GGR of 35 million PHP ($625,000) will pay an MGF of 10.5 million PHP ($188,000) per month. Operators without electronic casinos but earning at least 20 million PHP ($358,000) in GGR will be required to pay 4 million PHP ($71,000) per month. This tiered fee structure reflects PAGCOR’s intent to align fees with the revenue potential of different gaming categories.
Impact on Accredited Operators
The policy will affect a significant portion of the market. As of December 4, PAGCOR’s accredited list included 65 GSAs, all of whom already remit a portion of their GGR as a licensing requirement. The introduction of the MGF adds a fixed-cost component to operational expenses, partially shifting financial responsibility onto operators to meet minimum revenue requirements.
Strengthening Financial Discipline
By setting a minimum guaranteed revenue, PAGCOR effectively establishes a performance floor for the industry. Operators will now be required to maintain a certain level of revenue to remain viable, as the fee applies regardless of whether GGR targets are met.
As the implementation date approaches, the online gaming sector will closely watch how this additional financial burden affects competition within the Philippine online gaming market.
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