The Philippine Amusement and Gaming Corporation (Pagcor) has recently updated the gaming industry regulations, specifying that licensed live sports betting operators must pay a tax of 15% on total gaming revenue (GGR), while virtual sports operators are taxed at 30%. This tax adjustment will officially take effect in the billing cycle of November 2025, aiming to clarify the revenue sharing ratio between Pagcor and the operators. Additionally, starting from April 1, 2026, all certified "Gaming System Administrators" (GSA) in the Philippines, regardless of whether they are involved in electronic gaming, will be required to pay a "minimum guarantee fee" monthly. The Philippine gaming tax compliance guide and new regulations can be referenced on the PASA official website.
Tax Adjustment: Live Sports Rate Decreased, Virtual Sports Remain Unchanged
The core of the new regulations is the clear and optimized tax rates, with different categories having specific adjustments:
Live sports betting: The tax rate has been reduced to 15%, down from 17.5% in January 2025 and significantly lower than the 22.5% in mid-2023, reducing pressure on operators;
Virtual sports betting: The tax rate remains at 30%, consistent with the standard introduced in January 2025, and still lower compared to 41.25% in August 2023;
Adjustment purpose: Pagcor stated in the memo that this update is to clarify the revenue sharing ratio, making the industry's tax standards clearer and avoiding previous ambiguities.
New Requirements: GSA to Pay Minimum Guarantee Fee to Regulate Industry Supervision
Beyond tax adjustments, the new regulations also introduce specific requirements for "Gaming System Administrators" (GSA):
Paying entity: All GSAs certified in the Philippines, regardless of whether their business involves electronic gaming, must fulfill the obligation to pay;
Implementation time: Officially starting from April 1, 2026, the payment method is to pay a "minimum guarantee fee" monthly;
Core goal: This requirement aims to improve industry regulation and tax mechanisms, making GSA operations more standardized and avoiding regulatory loopholes.
Impact of the New Regulations: Operator Pressure Relieved, Compliance Remains Core
The new regulations have multiple impacts on industry development and corporate operations:
For operators: The tax reduction relieves pressure for live sports betting operators, while virtual sports operators maintain a relatively stable tax environment, making overall operating costs more controllable;
For the industry: Pagcor emphasizes that the adjustment optimizes the regulatory framework, aiding the healthy development of the industry while providing stable fiscal revenue for the government, achieving a win-win for both the industry and public interest;
Core bottom line: Industry insiders remind that despite the optimized tax burden, operators must still operate within a legal and compliant framework to ensure a stable and orderly market, "compliance is the prerequisite for long-term operation."
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This article is from "PASA-Global iGaming Leader," a gaming industry news channel:https://t.me/pasa_news
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PASA official website: https://www.pasa.news
