Regulatory tightening from PAGCOR could usher in a flurry of mergers and acquisitions across the country’s online gambling market to meet monthly gross gaming revenue requirements and guarantee fees.
The number of active online gaming platforms in the market could decline significantly, according to a report released by the Manila Standard, as all licensed operators would be required to generate at least P30 billion in monthly GGR (approximately €433m) and pay a monthly guarantee P9 billion fee (approximately €130m) regardless of performance.
The tightening of regulatory obligations is expected to stabilise the market, as Tony Manguiat, President of gaming software company HHR Philippines Inc, believes PAGCOR’s approach will bring unregulated players into the formal system.
Manguiat told the Manila Standard that only 33 of 72 licensees are currently operating, a number that could drop to 15 by April. Fewer than 20 platforms could comply with the regulatory requirements on their own, forcing them to consolidate.
He added that the new rules mean more than half or even three-fourths of the platforms present would not be able to operate as they currently exist. Mergers and acquisitions would be the only options for those that don’t meet the thresholds, with consolidation already occurring in some parts of the industry.
Operators have also been told to remit roughly 30% of their GGR to PAGCOR, which includes a mandatory 1% for social development programs.
Building an accountable system
PAGCOR Chair and CEO Alejandro H Tengco also referred to the new regulatory requirements during his speech to industry stakeholders this week at ICE.
According to the PAGCOR website, the CEO stated that the new minimum guaranteed fee for licensed online operators, alongside restrictions on certain payment channels, strengthens financial safeguards, ensures fair contribution to government revenues and promotes transparency.
Tengco said: “Regulation is not about avoiding discomfort. It is about building a system that is resilient, accountable, and worthy of public trust.”
The changes are part of an overall plan for PAGCOR to move towards “a more player-centric regulatory approach” and split its regulatory and commercial functions.
Other measures include tighter know-your-customer and identity verification standards, mandatory responsible gaming tools such as self-exclusion and betting limits, as well as stricter controls on gambling advertising to protect minors and vulnerable groups.
“As PAGCOR transitions toward a purely regulatory role, our focus is to set clear rules, enforce them consistently, and create a gaming ecosystem that is fair, competitive, and resilient,” Tengco added.
