Philippine online gaming operators got a breather this week with regards to newly established minimum guaranteed fees (MGFs). The Philippine Amusement and Gaming Corp (PAGCOR) announced that the payment structure will take effect in June, not April, due to the “current economic crisis”.
Given oil shortages caused by the US-Israeli war on Iran, President Ferdinand Marcos Jr has declared a national energy emergency. In a 24 March executive order, he said the conflict threatens “the availability and stability of the country’s energy supply”. By one estimate, the Philippines only has a 45-day reserve of oil.
In a Monday memo, PAGCOR said its board of directors “approved the deferment … for a period of two months, or until 1 June”.
New fees ‘address gaps in current structure’
PAGCOR announced the new fee structure in December. It decreed that, from April through September, all licensed Philippines gaming system administrators (GSAs) offering e-games would pay MGFs of PHP9 million ($149,400), based on assumed gross gaming revenue of PHP30 million. The monthly rate for GSAs that do not offer e-games was PHP4 million, based on GGR of PHP15 million. Starting in October, the rates were due to increase to PHP10.5 million and PHP4 million, respectively.
The first tranche of MGFs will now apply from 1 June to 31 December. The second will take effect starting 1 January 2027. PAGCOR indicated it may further adjust the timeline as necessary.
In a January memo, Jessa Mariz Fernandez, head of PAGCOR’s offshore gaming licence department, said the requirements would “address the gaps in the current fee structure and uphold the principles of fairness, accountability and fiscal responsibility”.
Speaking at ICE Barcelona that month, PAGCOR chairman and CEO Alejandro Tengco added that the new fees would also support nation-building and promote transparency.
“Regulation is not about avoiding discomfort,” Tengco said in a keynote address. “It is about building a system that is resilient, accountable and worthy of public trust.”
According to 2025 projections cited by the Filipino Business Hub, the Philippines’ online gambling sector could generate PHP105.3 billion in revenue by 2027.
Marjorie Preston
Marjorie began her gaming career in 2007 and has focused on Asian gaming markets since 2020. Outside of work, she writes about travel and film and plays the drums.
Original article: https://igamingbusiness.com/gaming/pagcor-defers-new-fees-for-online-gaming-operators-to-june-1/
