In response to the ongoing economic challenges, the Philippine Amusement and Gaming Corporation (PAGCOR) has postponed the implementation of new minimum guaranteed fees (MGF) for licensed online gaming operators. The changes, initially scheduled to begin on April 1, 2026, have been pushed back by two months, with the first tranche of the new fees now set to take effect on June 1, 2026.

This delay comes as the Philippines grapples with the economic repercussions of a global oil shortage exacerbated by the war in the Middle East. In light of this, President Ferdinand Marcos Jr. declared a national energy emergency, which has contributed to widespread economic strain, particularly in industries dependent on energy.

Impact of the New Fees

The new MGF framework, announced in December 2025, had been met with mixed reactions within the online gaming community. The changes are designed to address gaps in the previous fee structure and are part of PAGCOR’s effort to enhance accountability and sustainability in the sector.

Under the revised policy, licensed operators that offer electronic casino games will be required to pay an MGF of Php9 million (USD $153,000) per month, assuming a gross gaming revenue (GGR) of Php30 million. As reported by Inside Asian Gaming, for those who do not offer e-casino games, the monthly fee is set at Php3 million (USD $51,000) for operators achieving Php15 million in monthly GGR. The second tranche, effective from January 2027, will increase these amounts to Php10.5 million and Php4 million, respectively, for the different categories of operators.

These changes are expected to increase revenue generation for PAGCOR while promoting transparency in the industry. However, they also come with significant financial pressure on operators, particularly in the wake of the national energy crisis and the challenging economic environment.

The delay in the MGF implementation follows concerns raised by operators who argue that the new fee structure could have a severe impact on their revenue streams and sustainability. A significant number of gaming system administrators (GSAs), who run online gaming platforms, had expressed apprehension that the fees would disproportionately affect them, particularly as many operators have not yet reached the GGR thresholds required to meet the new fee levels.

Industry analysts predict that the new fees could lead to a loss of up to Php68 million (USD $1.15 million) in revenue for operators who struggle to meet the required benchmarks. This financial strain is further compounded by the uncertainty surrounding the future of online gambling regulations, with several companies fearing they may be pushed toward more stringent international markets, where the fees may be even higher.

While PAGCOR has committed to conducting a comprehensive evaluation of the industry conditions before the deferment period ends, it is unclear how these developments will affect the broader online gaming sector in the Philippines. The agency’s goal is to ensure that only those operators who are genuinely capable of meeting the financial benchmarks remain in business, addressing concerns related to under-reporting and misreporting of revenues.

PAGCOR’s Future Plans

PAGCOR’s Chairman and CEO, Alejandro Tengco, emphasized the importance of regulatory reforms to maintain transparency and accountability within the gambling sector. He remarked that regulation should not be seen as an obstacle, but as a way to build a resilient system worthy of public trust.

“We are building a system that ensures fairness, accountability, and the long-term sustainability of our sector,” Tengco stated during his speech at ICE Barcelona in early 2026. He also noted that the reforms would support nation-building efforts and help ensure that the Philippines remains a competitive and attractive destination for both legal gaming operators and foreign investors.

While PAGCOR’s long-term goal is to promote a healthy and transparent gaming market, the industry faces several challenges, including competition from illegal offshore gambling sites. PAGCOR’s new regulations aim to combat this issue by bringing more revenue into the regulated market, where players can be assured of fairness and legal protections.

The postponed MGF implementation is a temporary reprieve for operators, but PAGCOR has made it clear that the new framework will eventually come into effect. As the Philippines’ online gambling market continues to evolve, the government is likely to monitor the situation closely, ensuring that regulations are enforced in a manner that balances the interests of both operators and consumers.