PAGCOR online gaming regulatory changes

The Philippine Amusement and Gaming Corporation (PAGCOR) has implemented a new minimum guaranteed fee (MGF) structure for licensed online gaming operators. Following two deferrals, the regime took effect on July 1, 2026. Under these rules, Gaming System Administrators offering electronic casino games must pay a monthly minimum of PHP 9 million based on a PHP 30 million gross gaming revenue benchmark. Operators without electronic casino games face a PHP 3 million floor against a PHP 15 million revenue benchmark.

Analysis indicates the new structure significantly impacts the regulated market, with more than 60% of licensed online gaming system administrators operating below the new revenue benchmarks during the second quarter of 2026.

By September 2026, PAGCOR reported a significant decline in Gross Gaming Revenue (GGR), which fell by 20.33% year-on-year to PHP 88.13 billion in Q2 2026, following a 15.87% decrease in Q1. In response to declining revenues and emerging risks like artificial intelligence-driven fraud, President and CEO Alejandro H. Tengco announced plans to expand regulatory oversight.

A central component of this institutional reform is a proposal to separate PAGCOR’s regulatory functions from its operational roles to establish clearer industry standards. To combat unregulated providers, the agency is also implementing stricter rules for B2B players, revising accreditation for electronic payment gateways, and studying AI applications to curb sophisticated criminal schemes. This follows previous announcements regarding a mobile application designed to help players verify valid licenses.