PAGCOR postpones new online gaming fees until June 1

(AsiaGameHub) –   Online gaming operators in the Philippines have received a temporary reprieve concerning newly implemented minimum guaranteed fees (MGFs). The Philippine Amusement and Gaming Corp (PAGCOR) has stated that the new payment framework will now commence in June instead of April, citing the “current economic crisis” as the reason.

This decision follows President Ferdinand Marcos Jr.’s declaration of a national energy emergency, prompted by oil shortages stemming from the US-Israeli conflict with Iran. In an executive order dated 24 March, he warned that the situation endangers “the availability and stability of the country’s energy supply.” Reports indicate the Philippines’ oil reserves may last only 45 days.

A memo issued on Monday confirmed that PAGCOR’s board of directors “approved the deferment … for a period of two months, or until 1 June.”

New fees ‘address gaps in current structure’

The new fee schedule was originally unveiled in December. It stipulated that, from April to September, all licensed Philippine gaming system administrators (GSAs) providing e-games would be subject to MGFs of PHP9 million ($149,400), calculated on an assumed gross gaming revenue of PHP30 million. GSAs not offering e-games faced a monthly rate of PHP4 million, based on a GGR of PHP15 million. These rates were scheduled to rise to PHP10.5 million and PHP4 million, respectively, beginning in October.

Under the revised timeline, the first phase of MGFs will be enforced from 1 June to 31 December. The second, increased phase is now set to begin on 1 January 2027. PAGCOR noted it retains the option to make further adjustments to the schedule if needed.

In a January memorandum, Jessa Mariz Fernandez, who leads PAGCOR’s offshore gaming licence department, explained that the updated requirements are designed to “address the gaps in the current fee structure and uphold the principles of fairness, accountability and fiscal responsibility.”

Speaking at ICE Barcelona the same month, PAGCOR chairman and CEO Alejandro Tengco emphasized that the revised fees would further contribute to nation-building and enhance transparency within the industry.

“Regulation is not about avoiding discomfort,” Tengco remarked during a keynote address. “It is about building a system that is resilient, accountable and worthy of public trust.”

Projections for 2025 referenced by the Filipino Business Hub suggest the nation’s online gambling industry could yield PHP105.3 billion in revenue by 2027.