Strengthened regulatory oversight by the Philippine Amusement and Gaming Corporation (PAGCOR) could lead to a significant wave of mergers and acquisitions in the country’s online gambling market. Operators will be required to meet monthly gross gaming revenue (GGR) thresholds and pay mandatory guarantee fees.
According to a report by Manila Standard, the number of active online platforms could drop significantly. New rules require all licensed operators to generate at least PHP 30 billion in monthly GGR (around $510 million) and pay a fixed guarantee fee of PHP 9 billion per month (approximately $152 million), regardless of actual performance.
The tightening of requirements is expected to bring order and stability to the market. Tony Manguiat, president of gaming software company HHR Philippines Inc., believes PAGCOR’s strategy will help bring unregulated operators into the legal system.
Manguiat stated that currently only 33 of 72 licensed operators are actively operating, and this number could fall to 15 by April. Fewer than 20 platforms will be able to meet the new requirements on their own, effectively pushing the market toward consolidation.
He noted that the introduction of the new rules will mean that more than half—and possibly up to 75%—of existing platforms will be unable to operate in their current format. Companies that do not meet the set thresholds will have no choice but to consider mergers and acquisitions, while consolidation has already begun in certain segments of the market.
Additionally, operators are required to remit roughly 30% of their GGR to PAGCOR, including a mandatory 1% contribution for social development programs.
Building an Accountable System
PAGCOR Chair and CEO Alejandro H. Tengco also addressed the new regulatory requirements during his speech to industry stakeholders at ICE this week.
According to PAGCOR’s official website, the CEO emphasized that the introduction of a minimum guaranteed fee for licensed online operators, along with restrictions on certain payment channels, is aimed at strengthening financial safeguards, ensuring fair contributions to government revenues, and improving market transparency.
Tengco stated: “Regulation is not about avoiding discomfort. It is about building a system that is resilient, accountable, and worthy of public trust.”
These changes are part of PAGCOR’s broader strategy to move toward “a more player-centric regulatory approach” and separate its regulatory and commercial functions.
Other measures include tighter know-your-customer and identity verification standards, mandatory responsible gaming tools such as self-exclusion and betting limits, and stricter controls on gambling advertising to protect minors and vulnerable groups.
“As PAGCOR transitions toward a purely regulatory role, our focus is to set clear rules, enforce them consistently, and create a gaming ecosystem that is fair, competitive, and resilient,” Tengco added.
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