PAGCOR Rules to Trigger Philippine Online Gaming Mergers

The Philippine Amusement and Gaming Corp (PAGCOR) has implemented stringent new regulations through a December 2025 memorandum, expected to drive a wave of mergers in the country’s online gaming sector throughout 2026. Under the updated rules, licensed operators and administrators must generate a minimum of P30 billion in monthly gross gaming revenue and remit a P9 billion monthly guarantee fee, regardless of actual earnings. Currently, only 33 of the 72 licensed platforms are active and industry observers project this figure could fall to around 15 by April as smaller operators struggle to meet the requirements.

Rising Standards for Operators

Tony Manguiat, president of HHR Philippines, forecasts that fewer than 20 platforms will be able to satisfy the new thresholds independently. When the combined GGR of current platforms is compared against PAGCOR’s benchmarks, more than half or potentially up to three-fourths fall short. This gap makes mergers and partnerships the most viable option for many operators. Some companies have already begun collaborating with established land-based casinos to pool revenue and comply with PAGCOR’s standards.

Additional Financial Obligations

Beyond the guarantee fee, operators must remit roughly 30 percent of gross gaming revenue to PAGCOR, including a mandatory one percent allocation for social development programs. HHR Philippines has established its corporate social responsibility arm, Buenas Cares, to oversee these funds once approved by PAGCOR. Manguiat anticipates that the first half of 2026 will see a slowdown in activity as operators adjust to the new rules, potentially affecting market demand during this transition.

Industry Consolidation Expected

While PAGCOR has issued numerous licenses, the online gaming market remains limited in scope. The new regulations are intended to encourage operators currently outside the licensed system to enter the formal market. Consolidation through mergers is expected to accelerate as operators fully absorb the financial obligations, resulting in a smaller but more stable industry.

Partnerships as a Strategic Move

Merging with established casinos offers online platforms a faster route to meet revenue and guarantee fee targets. This trend is projected to reduce the number of active platforms by mid-2026, creating a market dominated by operators capable of sustaining long-term compliance.

Preparing for a More Regulated Market

Manguiat notes that despite the high number of licenses, the current online gaming sector serves a relatively small audience. PAGCOR’s new approach provides an avenue for integrating previously unregulated operators into the official system. As platforms merge and adapt, the industry moves toward a more regulated environment with fewer, more financially robust players shaping the market’s future.