Philippine gaming regulator PAGCOR has deferred by two months the implementation date for a new monthly Minimum Guaranteed Fee (MGF) to be charged on licensed online operators due to what it described as the “current economic crisis.”
The revised timeline was announced to the industry via a Monday memorandum, will see the original imposition date for the first tranche deferred from 1 April 2026 to 1 June 2026. The second tranche will be deferred by three months from 1 October 2026 to 1 January 2027.
Under the terms of the MGF policy, the first tranche will see licensed operators serving the Philippines’ domestic market and who offer electronic casino games pegged to a benchmark of Php30 million (US$510,000) in monthly GGR and must pay a monthly MGF of Php9 million (US$153,000). Those who do not offer e-casino games, such as sportsbooks, will be pegged to a benchmark of Php15 million (US$255,000) in monthly GGR and must pay Php3 million (US$51,000).
The second tranche will see those benchmarks rise to Php35 million (US$595,100) in GGR and Php10.5 million (US$178,500) in fees for those offering electronic casino games, or Php20 million (US$340,070) in GGR and Php4 million (US$68,000) in fees for those that don’t.
The rates represent an effective tax rate of 30% on e-casino operators and 20% for others at the minimum rate.
PAGCOR said in Monday’s memorandum that, prior to the expiration of the two-month deferment period, its Electronic Gaming Licensing Department will conduct a comprehensive evaluation of prevailing industry conditions to determine whether to proceed or further adjust the deferment of MGF implementation. This, the agency explained, is “consistent with the objectives of long-term sector sustainability.
The MGF is aimed to solve issues of under declaration or misdeclaration of revenues while also compelling any operators who genuinely cannot reach the minimum benchmarks to confront PAGCOR with the reality of their business.
Leading Philippine law firm Arden Consult recently issued a paper on the new MGF in which it explained that, by drawing low-performing licensees out of invisibility, PAGCOR is inserting a safeguard because licensees producing no meaningful revenue can pose a regulatory risk by eying illegal channels to make up the shortfall.
The Philippines has been hit particularly hard by the global oil shortage triggered by the war in the Middle East and was the first country in the world to declare a national energy emergency.
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