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The Philippine Amusement and Gaming Corporation (PAGCOR) is transitioning from reactive enforcement measures to a comprehensive, strategic regulatory framework designed for long-term sustainability, according to industry analysis from Marie Antonette Quiogue, chief executive at Arden Consult.
In her year-end assessment, Quiogue highlighted two defining reforms for 2026: the implementation of a business-to-business accreditation system and the establishment of minimum guaranteed fees. These measures represent a fundamental shift in how the Philippines regulates its gaming sector, moving beyond basic compliance enforcement toward building a robust regulatory infrastructure capable of withstanding future challenges.
Regulatory Response to Political Pressure
The Philippine gaming sector faced significant scrutiny in early 2025, with legislative hearings examining the possibility of an outright ban on online gambling. Senate testimony from families affected by gambling-related harm intensified pressure on the industry and its regulators.
Rather than adopt defensive postures, PAGCOR used the crisis as a catalyst for transformation. Responsible gaming shifted from a compliance checkbox to a commercial imperative for market survival, according to Quiogue’s analysis.
The regulator engaged in consultations with international partners to identify and adapt global best practices. The resulting policy changes included stricter advertising controls, enhanced Know-Your-Customer procedures, and coordination with the Bangko Sentral ng Pilipinas to remove gambling mini-apps from electronic wallets. These measures demonstrated a commitment to building defensible systems rather than simply addressing immediate concerns.
B2B Accreditation Creates Supply Chain Oversight
PAGCOR launched its B2B accreditation scheme in October 2025, requiring all service providers in the gaming ecosystem to undergo regulatory evaluation and approval. The policy extends oversight beyond licensed operators to include game developers, marketing affiliates, payment processors, and other support services.
“The logic is rather simple: any actor desirous of entry into the Philippine market must establish a local presence and come under regulatory oversight,” Quiogue explained. The framework creates a closed accountability loop spanning the entire gaming supply chain.
Minimum Guaranteed Fees Reshape Market Economics
Starting April 1, 2026, PAGCOR will enforce a new financial structure through Minimum Guaranteed Fees (MGF). The system imposes fixed monthly payments on gaming system administrators based on specific revenue thresholds.
Under the new structure, e-casino operators generating PHP 30 million in monthly gross revenue will pay PHP 9 million in fees. Casino operators earning $15 million in gross revenue will face $3 million in assessments. Fee thresholds for non-gaming operators will increase further in October 2026.
John Calderon, Executive Managing Partner at Consulcy Advisory Group, noted that smaller operators and those with marginal revenue streams will face the greatest impact. “The price of entry might be too high for many inactive license holders to ever launch, which would result in a more stable market but perhaps one that is less diverse and less competitive,” Calderon said.
Industry Consolidation Expected
Despite anticipated market consolidation, industry experts generally expect the reforms to strengthen the Philippine gaming sector. Quiogue indicated that if stakeholders support the structural changes, the future regulatory environment will differ substantially from current conditions.
The reforms demonstrate a regulatory approach that acknowledges historical gaps, withstands political pressure, and prioritizes long-term viability over short-term operator gains. Stakeholders are monitoring 2026 as a critical year for assessing whether the new regulatory architecture delivers on its promise of market stability.
Source: SiGMA
