In 2026, the Philippine online gaming (iGaming) industry will face crucial transformations, with new tightened regulatory rules expected to take effect in April, and signs of industry mergers and acquisitions are already emerging. The regulatory adjustments by the Philippine Amusement and Gaming Corporation (PAGCOR) are not intended to suppress the industry but to promote scaled and standardized development, ending the long-term fragmented market state. Companies within the industry are adjusting their structures to meet higher compliance thresholds, as compliance, mergers, and scaling have shifted from optional to essential for survival. Relevant Philippine iGaming compliance transformation cases and regulatory details can be found on the PASA official website.
New Regulation Core: Minimum Guarantee Fee + License Integration Forces Industry Concentration
The two key measures of this regulatory upgrade directly target the issue of industry dispersion:
Implementation of the Minimum Guarantee Fee (MGF) system: This puts considerable pressure on small and medium-sized operators, and even companies like HHR must adapt proactively and cannot avoid it;
Accelerated license integration: Not a large-scale revocation of licenses, but encouraging cross-business mergers and reorganizations, such as the integration of sports betting licenses with online casino licenses, and the merger of electronic bingo with other online entertainment services;
Clear regulatory direction: PAGCOR aims to make the industry development more controllable and robust through strict rules, completely ending the extensive era of "earning money by just holding a license".
Industry Impact: Short-term Revenue Decline, Mergers Become a Survival Necessity
The short-term pains brought by the new regulations are gradually becoming apparent, and the industry structure is rapidly reshaping:
Significant revenue fluctuations: PAGCOR data shows that recent online gaming revenues have directly dropped by nearly 49%, significantly increasing operational pressures on companies;
Single service models struggle to survive: Companies offering only a single service continue to face shrinking survival space, and "banding together" across different licenses and business lines has become the norm, with active merger and reorganization cases increasing;
Half-year transition period: Anthony Manguiat, President of HHR, predicts that the first half of 2026 will be a "pain period" for the industry, where companies need to first adapt to the rules before discussing subsequent growth.
Corporate Response: Compliance as the Base, Multi-line Layout of Online and Offline + Content Marketing
Facing regulatory pressures, companies in the industry are adjusting their strategies from multiple dimensions, actively adapting to new regulatory requirements:
Strengthening compliance systems: Implementing self-exclusion, family exclusion mechanisms, conducting stricter KYC audits, and setting minimum deposit limits to avoid industry-wide risks due to compliance loopholes;
Layout of physical outlets: Licensed companies need to support a certain number of physical terminals, with about 1400-1600 legal gaming halls currently in the Philippines, HHR has participated in nearly 50 physical layouts;
Compliance-oriented content marketing: Incorporating content creators such as streamers and internet celebrities into the compliance system, HHR's licensed online casino Buenas PH has collaborated with well-known streamers to promote "compliant, responsible gaming", aligning with the consumption habits of the younger generation.
Future Norm: Online + Physical + Unified Regulation, Compliant Entities Win the Future
After the regulatory upgrade, the Philippine iGaming industry will form a new operational structure:
Innovative operating model: "Online system + physical terminals + unified regulation" becomes the new norm, and purely online-based models will not meet compliance requirements;
Controllable capital outflow risks: Manguiat opposes a complete ban on online gaming, believing that under technological conditions "banning won't work", and regulated supervision can retain capital;
Long-term value highlighted: After short-term pains, the industry's concentration will increase, and scaled, compliant enterprises will dominate, making the industry development more robust and sustainable.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel:https://t.me/pasa_news
Original deep gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
