PAGCOR financial rules are expected to prompt consolidation
Operating fees recently introduced by the Philippine gaming regulator, PAGCOR, may reshape the country’s online gaming landscape in 2026, according to reports.
PAGCOR outlined raised minimum revenue and fee requirements for licensed online gaming operators and administrators in a December 2025 memorandum.
Under the rules, platforms are required to generate at least PHP30 billion (US$506 million)1 PHP = 0.0169 USD
2026-01-21Powered by CMG CurrenShift in monthly gross gaming revenue and pay a fixed PHP9 billion (US$152 million)1 PHP = 0.0169 USD
2026-01-21Powered by CMG CurrenShift monthly guarantee fee, regardless of performance.
According to the Manila Standard, industry executives have raised concerns that the measures were likely to reduce the number of active platforms.
The president of electronic gaming software provider HHR Philippines, Tony Manguiat, noted that only 33 of the country’s 72 licensees were currently operating, with the figure potentially falling to 15 by April.
Manguiat said fewer than 20 platforms could meet the new thresholds independently. He added that most operators lacked the scale to comply on their own, with up to three-quarters of platforms unable to operate in their current forms, leaving mergers or realignments as the only viable options.
Some consolidation has already begun, with service providers forming partnerships with established casinos to bolster revenues and remain compliant. Manguiat said merger activity was expected to intensify through 2026 as operators absorbed the full financial impact of the rules.
As part of its efforts to address problem gambling, PAGCOR announced in December that it would launch a 24/7 gambling hotline, expected to debut this year.
Abi Bray brings strong researching skills to the forefront of all of her writing, whether it’s the newest slots, industry trends or the ever changing legislation across the U.S, Asia and Australia, she maintains a keen eye for detail and a passion for reporting.
Verticals:
Sectors:
Topics:
Dig Deeper
Related stories
The Backstory
How the regulatory squeeze set the stage
The Philippine gaming regulator’s push for tougher oversight has been building for more than a year, laying the groundwork for today’s financial reset. In mid-2024, PAGCOR argued that stricter regulation — not a ban — was the pragmatic way to contain risks while preserving tax revenue and jobs. Chairman Alejandro Tengco said the sector contributed around PHP50 billion last year and outlined plans to deploy artificial intelligence for behavioral monitoring, enforce self-exclusion and tighten advertising standards. That stance, detailed in PAGCOR calls for stricter online gambling rules, framed compliance as both a consumer protection and fiscal priority, foreshadowing tougher economics for licensees.
Those intentions were quickly matched with operational rules. PAGCOR began delinking e-wallets and certain payment channels to curb illicit transactions, banned credit cards and cryptocurrencies for betting and required self-exclusion and betting limits across licensed platforms. Revenues softened in the third quarter as operators and players adjusted, Tengco said, but the regulator was emphatic that the changes aligned the market with global standards. The compliance shift, chronicled in PAGCOR tightens responsible gaming rules as online play accelerates, signaled a transition from broad policy talk to hands-on enforcement that would raise the cost of doing business.
At the same time, PAGCOR moved to clean up the demand side by working with the Ad Standards Council to restrict promotions in public spaces and prime-time TV slots. It also prioritized age verification, including AI-driven tools, to strengthen the guardrails around online play. The combination of payments restrictions, marketing limits and automated risk detection narrowed the latitude that had allowed some operators to grow quickly with lighter controls, a backdrop that makes today’s higher revenue thresholds and fixed fees more forceful.
Illegal platforms draw fire, bolstering the case for licensed consolidation
Regulators paired tougher rules for licensees with a crackdown on unregistered sites that siphon users and undermine tax collection. Philippine telecoms blocked 44 of 52 illegal platforms flagged by PAGCOR in a joint operation with government cybercrime units, a show of capability described in Forty-four illegal gambling platforms blocked by Philippines’ telecom firms. Authorities warned users of potential criminal liability for accessing restricted sites and pushed for app store takedowns and tighter e-wallet enforcement.
That enforcement wave supports PAGCOR’s argument that a well-policed legal market can channel activity into compliant operators. It also intensifies competitive pressure: as illicit options shrink, licensed firms must meet higher standards and shoulder heavier levies while absorbing displaced demand. The effect is to privilege scale and balance sheets that can weather compliance costs, making smaller platforms more likely to seek partners or buyers as they confront the new fee regime.
PAGCOR’s own investment in enforcement capacity underlines the shift. The regulator funded the National Bureau of Investigation to pursue illegal igaming, while Congress expanded cyber monitoring budgets. These moves narrow arbitrage opportunities between compliant and noncompliant operators, a dynamic that tends to accelerate consolidation in regulated markets.
Finance officials eye transparency and taxes
The Department of Finance has signaled that the financial rules may be one piece of a broader push to formalize the industry through market discipline. Finance Secretary Ralph Recto said regulators are weighing whether to require all online gaming operators to list on the Philippine Stock Exchange to reveal beneficial owners and improve disclosures. He also floated higher taxes and remittance rates that could add PHP10 billion a year. Markets took notice: DigiPlus Interactive tumbled 30% in one session, while Bloomberry Resorts fell 5.62%, as reported in Philippine government considers mandatory stock exchange listing for igaming firms.
A public listing mandate would dovetail with PAGCOR’s transparency goals by moving operators into a regime that requires timely financial reporting, governance standards and ownership scrutiny. If adopted alongside higher fees, that would further pressure subscale firms and reward operators with access to capital markets. The Department of Finance has also discussed a dedicated online gambling tax, an idea PAGCOR has supported in principle as it argues that robust regulation can finance public services, as detailed in PAGCOR calls for stricter online gambling rules.
The monetary authorities are part of the conversation. Policymakers have weighed restrictions on e-wallet use for betting, an extension of PAGCOR’s rules delinking certain payment channels. Such measures would harden the perimeter around legal play while increasing operational friction — again, a tilt toward larger operators that can build compliant payment rails.
Workforce and outsourcing lanes evolve post-POGO
The fallout from the offshore-facing POGO ban has raised questions about employment and the scope of adjacent services. PAGCOR has tried to ringfence legitimate support work by backing “special class” BPOs that provide back-office services — but not betting operations — to licensed international gaming firms. The regulator emphasized frequent checks to prevent unauthorized wagering and said the segment employs close to 5,000 workers, with a 95% Filipino staffing mandate and above-average pay. Tengco’s commitment, outlined in PAGCOR to support special class companies providing outsourced work to international gaming firms, suggests the government wants to preserve high-quality jobs even as it tightens the screws on operators.
For domestic platforms facing higher fees and compliance costs, partnerships with established casinos and service providers may offer shared infrastructure and lower unit costs. That trend is already visible: operators are linking arms to bolster revenues and remain within the rules as ad limits, payment restrictions and responsible gaming requirements narrow growth levers. As firms adjust staffing and vendor relationships, the availability of compliant outsourcing channels becomes part of the consolidation calculus.
The stakes: fewer, bigger players and a more rigid rulebook
In aggregate, the policy path points to a smaller field of better-capitalized operators subject to tighter oversight. PAGCOR’s responsible gaming framework — from payment controls and bans on credit cards and crypto to AI-driven monitoring and a 24/7 helpline — is designed to curb excessive play and illicit flows, as captured in PAGCOR tightens responsible gaming rules as online play accelerates. The crackdown on illegal platforms further narrows the grey market, per Forty-four illegal gambling platforms blocked by Philippines’ telecom firms, increasing the relative burden on licensed firms to meet higher fiscal and compliance bars.
If finance officials move ahead with stock listing mandates and tax hikes, as discussed in Philippine government considers mandatory stock exchange listing for igaming firms, the capital and disclosure demands could accelerate mergers and partnerships. Consumer protections and public revenues may benefit from the resulting transparency and scale, but choice could narrow and innovation may slow in the near term as firms prioritize compliance and cash flow stability.
The path forward hinges on how quickly enforcement tightens and whether fiscal policy follows. For now, the regulator’s message is consistent: responsible growth under stricter rules, fewer loopholes and higher bars for market entry and survival.
