The Philippine Amusement and Gaming Corporation (PAGCOR) recently issued new regulatory rules, lowering the gross gaming revenue (GGR) sharing ratio for live sports betting and specifying the minimum guarantee requirements for online gaming operators. These adjustments not only fill the gaps in the existing fee structure but also provide a stable environment for the continuous growth of the local online gaming industry. As an important market for online gaming in Southeast Asia, the regulatory dynamics in the Philippines are closely watched by the industry, and relevant compliance operations can be referenced on the PASA official website.
Core Regulatory Adjustments: Revenue Share Reduction + New Minimum Guarantee Requirements
PAGCOR has optimized the regulatory framework of the online gaming industry through two key policies:
1. GGR Sharing Rate Adjustment
Live sports betting: The sharing rate has been reduced from 17.5% to 15%, with the new rule retroactive to the billing cycle of November 2025;
Virtual betting: The 30% sharing rate remains unchanged.
2. Minimum Guarantee Fund (MGF) Requirements
From April 1, 2026, to September 30, 2026: Game System Operators (GSAs) providing electronic games (e-games) must pay a monthly minimum of 9 million Philippine pesos; GSAs not offering e-games must pay 4 million Philippine pesos per month;
Starting October 1, 2026: The above guarantees will be adjusted to 10.5 million Philippine pesos and 4 million Philippine pesos (the latter remains unchanged).
Jessa Mariz Fernandez, head of PAGCOR's Electronic Gaming Licensing Department, stated that these requirements will "fill the current gaps in the fee structure, adhering to principles of fairness, accountability, and fiscal responsibility."
Online Gaming Industry: Revenue Surge Highlights Development Potential
The optimization of regulatory policies further unleashes the growth potential of the Philippine online gaming industry:
In the first half of 2025, PAGCOR reported a total GGR of 214.75 billion Philippine pesos, a year-on-year increase of 26%;
There is a clear differentiation in business types: offline gaming revenue was 93.36 billion Philippine pesos, down 5.85% year-on-year; e-games revenue was 114.83 billion Philippine pesos, up 82.67% year-on-year, becoming the core engine of industry growth;
Strong long-term potential: According to a Statista report, driven by a young digital-native population and high mobile penetration rates (especially in urban areas), the revenue of the Philippine online gaming industry is expected to reach 103 billion Philippine pesos by 2027; a Gartner report in 2024 shows that the Philippines ranks second globally in mobile gaming readiness, just behind Singapore.
Regulatory Reform Background: Cracking Down on Illegal Activities and Regulating Market Order
PAGCOR's series of new rules are important measures in its ongoing efforts to regulate the market and combat illegal activities:
Cracking down on offshore gaming (POGOs): In 2024, the Philippine government banned this business model due to its links with organized crime (fraud, money laundering, human trafficking);
Strengthening compliance requirements: After the POGO ban, PAGCOR upgraded its customer identity verification (KYC) processes and restricted outdoor and television gambling advertising;
Regulatory philosophy: Alejandro Tengco, PAGCOR's chairman, stated at the ICE Barcelona conference that "regulation is not about avoiding problems, but about building a resilient, responsible, and trustworthy system," positioning the Philippines as a proactive regulator of reforms in the digital age.
————
This article is from "PASA-Global iGaming Leaders," a gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
