New PAGCOR rules expected to trigger consolidation in Philippine online gaming market
Higher revenue thresholds and guaranteed fees are expected to push smaller operators toward mergers or partnerships.
The Philippines.- New regulatory requirements introduced by the Philippine Amusement and Gaming Corp (PAGCOR) are expected to force smaller operators to merge, partner up or exit the market. Industry executives say only a limited number of platforms can meet new financial requirements, suggesting that the market may see significant consolidation.
Under the new framework approved in late 2025, licensed online gaming operators and system administrators must generate at least PHP30bn (US$435m) in monthly gross gaming revenue (GGR) and pay a fixed monthly guaranteed fee of PHP9bn (US$130m) regardless of performance. Operators must also remit around 30 per cent of GGR to PAGCOR, including 1 per cent for social development programmes.
Of the 72 licensed online gaming operators in the Philippines, only 33 are currently active. It’s been suggested that the number could fall to around 15 by April since fewer than 20 platforms are believed to have the scale needed to comply with the new requirements.
Tony Manguiat, president of HHR Philippines Inc., said that when GGR levels are measured against the new thresholds, more than half, and potentially up to three-quarters, of existing platforms would no longer be viable in their current form.
Some consolidation is already underway, with online platforms partnering with established land-based casinos. PAGCOR has framed the reforms as part of a push to strengthen oversight, increase fiscal discipline and bring unregulated operators into the formal system. While the transition could reduce gaming activity in the short term, industry observers believe the framework will ultimately lead to a more stable and better-capitalised online gaming market.
