The Philippine Amusement and Gaming Corporation (PAGCOR) issued a memorandum on December 15, introducing new regulatory rules for online gaming (iGaming), with the core being the establishment of high revenue thresholds and minimum guarantee requirements. The new regulations will take effect in April, requiring all licensed operators and managers to achieve a minimum monthly Gross Gaming Revenue (GGR) of 30 billion pesos (approximately 506.1 million USD), and to pay a minimum guarantee of 9 billion pesos each month. These stringent requirements are considered to force industry mergers and acquisitions, while PAGCOR's simultaneous promotion of restoring e-wallet payment links also brings new variables to the industry development. Relevant Philippine iGaming compliance policies and M&A cases can be referenced on the PASA official website.
New Regulation Core: High Revenue + High Guarantee Setting Industry Entry Red Lines
The core of this new regulation is to standardize the industry through quantitative indicators, filling the existing cost structure gaps:
Mandatory revenue requirement: Monthly GGR must meet 30 billion pesos, approximately 506.1 million USD, filtering enterprises capable of scaled operations;
Minimum guarantee obligation: A monthly payment of 9 billion pesos is required, strengthening the financial responsibility and compliance awareness of enterprises;
Policy intention: Jessa Mariz Fernandez, head of PAGCOR's electronic gaming licensing department, stated that the new regulations aim to maintain fairness, accountability, and fiscal responsibility principles. Alejandro Tengco, chairman of PAGCOR, also emphasized that regulation is not about avoiding challenges but about building a resilient and trustworthy system, while supporting national construction and transparency enhancement.
Industry Impact: Small and Medium Operators Under Pressure, Integration Scale May Exceed Half
The high threshold directly impacts small and medium operators, making industry integration an inevitable trend:
Strong integration expectations: Anthony Manguiat, CEO of HHR Philippines, predicts that the number of licensed iGaming operators may sharply decrease from 33 to 15, reducing by more than half, with weaker enterprises being acquired;
Short-term pain and long-term benefits: Manguiat mentioned that strict regulation might suppress market demand in the short term, but in the long run, it can bring unlicensed operators into the compliance system, optimizing the industry ecosystem;
Market differentiation intensifies: Leading enterprises easily meet the standards with their capital and scale advantages, while small and medium operators, if unable to meet the threshold, either get acquired or exit the market, significantly increasing industry concentration.
Supporting Demand: Promoting the Restoration of E-wallet Payments to Ease Industry Circulation Pressure
Simultaneously with the implementation of the new regulations, PAGCOR is actively coordinating payment channel issues:
Payment restriction background: In August 2025, the Central Bank of the Philippines (BSP) ordered e-wallets like GCash and Maya to remove links to gambling sites, causing a suppression in the growth of electronic gaming business in the third quarter of 2025;
Business resilience highlighted: Despite facing payment restrictions, the iGaming industry still achieved a 17.4% growth during that quarter, contributing 44.4% to PAGCOR's total GGR;
Restoration of payment demands: Tengco, during the ICE exhibition in Barcelona, expressed hope that with strengthened player protection measures, the central bank would "relax" and allow payment service providers to re-establish links with iGaming operators, and the new guarantee requirements are also expected to enhance industry strength, paving the way for the restoration of payment channels.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel:https://t.me/pasa_news
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