The Philippine Amusement and Gaming Corporation (PAGCOR) has introduced stricter rules for online gaming operators. Under a December 2025 memorandum, licensed operators and administrators are required to generate PHP 30 billion (approximately €433 million) in Gross Gaming Revenue (GGR) per month and pay a PHP 9 billion (roughly €130 million) monthly guarantee fee, even if earnings fall short. Industry estimates suggest the number of active platforms could shrink sharply as smaller operators struggle to meet the new requirements.
PAGCOR Tightens Responsible Gambling Framework Amid Digital Growth: Quick Summary
- PAGCOR’s December 2025 memorandum sets tougher financial requirements for online gaming operators, including a PHP 30 billion (€433 million) monthly GGR and a PHP 9 billion (€130 million) monthly fee. Analysts expect the number of gaming sites to fall sharply in early 2026 as smaller operators struggle to comply.
- Operators also face added costs, including sending around 30% of gross gaming revenues to PAGCOR and allocating 1% for social development programs. Many firms are expected to pursue mergers or partnerships, even with land-based casinos, to combine revenues and meet regulatory standards.
- PAGCOR said it has strengthened responsible gambling and integrity measures by delinking certain e-wallets and restricting payment channels, which contributed to softer revenues in Q3 2025.
New Revenue and Fee Structures Put Licensees Under Financial Stress
The Philippine Amusement and Gaming Corporation (PAGCOR), in a press release published on Wednesday, December 10, announced that it was intensifying responsible gambling measures as the online gaming market continues to flourish. The measure is part of a wider government initiative to enforce stricter gambling regulations.
Licensed operators are required to meet PHP 30 billion (approximately €433 million) in Gross Gaming Revenue (GGR) per month and pay a PHP 9 billion (roughly €130 million) monthly guarantee fee, even if earnings fall short. HHR Philippines president Tony Manguiat said fewer than 20 platforms are likely to meet the new standards without support.
He explained that comparing current GGR across platforms against the new requirements reveals that nearly three-fourths of operators fall short of the threshold to function independently. As a result, consolidation through mergers or partnerships will be the only option for many small companies.
Out of 72 licensees, only 33 platforms are active today, and experts predict the count could drop to 15 by April. Additionally, operators must also send 30% of their GGR to PAGCOR, including 1% for social development programs. Manguiat said the first half of 2026 may see less activity as companies adjust to the new regulations.
Some service providers have already signed partnership agreements with established land-based casinos to combine revenues and meet PAGCOR’s requirements. Manguiat said that the absence of choice in the regulated market could encourage offshore operators to target consumers in the Philippines, despite the ban.
PAGCOR Tightens Payment Rules, Advertisement Regulations and Responsible Gaming Standards
PAGCOR has stepped up responsible gaming measures in recent months as the country’s digital gaming market continues to expand. Alejandro H. Tengco, the Chairman and CEO of PAGCOR, explained that the recent financial safeguards, such as delinking e-wallets and certain payment systems, will strengthen integrity and player protection.
Tengco stated:
In recent months, most of you are aware that our industry has confronted severe headwinds. These reforms inevitably have short-term impacts that are necessary because we cannot build a modern digital gaming ecosystem on foundations that do not fully meet global integrity and compliance standards.
The Chairman explained that the payment changes are part of a broader initiative fostering responsible gambling. He explained, “This commitment extends to responsible gaming and player protection.” Licensed operators are now required to integrate tools such as self-exclusion and betting limits to help players manage their gambling habits.
PAGCOR has also restricted the use of credit cards and cryptocurrencies for betting. Tengco explained that the decision was based on recognising “the risks of over-borrowing and impulsive behaviour.” In July, PAGCOR signed a partnership agreement with the Ad Standards Council (ASC), agreeing to restrict gambling ads from public spaces and introducing stricter standards for marketing content.
The combined impact of higher financial requirements and tighter compliance rules is expected to reshape the Philippine online gaming market in 2026. Licensed gambling operators will likely pursue mergers and partnerships to meet PAGCOR’s monthly revenue and guarantee fee targets while adapting to stricter payment and advertising controls.
PAGCOR stated that the shift aims to develop a stronger system. Tengco explained that the future of online gaming in the Philippines requires dynamic regulatory oversight and a shared commitment to integrity among industry stakeholders for long-term sustainability.
Tengo observed:
The future of gaming will demand regulatory agility, industry cooperation, and a shared commitment to integrity, and players should always feel that their safety and well-being remain at the core of our policies.