PAGCOR reduces revenue levy to 15% as online gaming reforms continue
The Philippine Amusement and Gaming Corp (PAGCOR) has reduced its gross gaming revenue (GGR) share rate for live sports betting from 17.5% to 15%, marking the latest adjustment to the country’s evolving online gambling framework.
In a memo issued on 19 January, PAGCOR’s e-games licensing chief Jessa Mariz Fernandez confirmed that the revised rate will apply specifically to live sports betting, while the 30% share rate for virtual betting will remain unchanged. “The share rates shall apply retroactively to the November 2025 billing period,” Fernandez said.
The change comes alongside the introduction of new minimum guaranteed fee (MGF) requirements for online gaming operators. From 1 April to September, licensed gaming system administrators (GSAs) offering e-games must pay a monthly minimum fee of PHP9bn, while operators without e-games offerings will be required to pay PHP4m per month. From 1 October, the MGF for e-games providers will increase to PHP10.5bn, with the non-e-games rate remaining unchanged.
According to Fernandez, the revised fee structure is intended to address gaps in the existing framework and reinforce regulatory principles of fairness, accountability and fiscal responsibility, as PAGCOR seeks to balance market growth with sustainable oversight.
Speaking at ICE Barcelona on 21 January, PAGCOR chair Alejandro Tengco framed the reforms as part of a broader effort to modernise gambling regulation and strengthen public trust in the sector. “Regulation is not about avoiding discomfort,” Tengco said. “It is about building a system that is resilient, accountable and worthy of public trust.”
Tengco also highlighted the Philippines’ recent crackdown on offshore gaming, referencing the government’s 2024 ban on Philippine offshore gaming operators (POGOs) following links to organised crime. Since the ban, PAGCOR has tightened know-your-customer procedures, strengthened identity verification requirements and introduced stricter controls on gambling advertising.
Despite heightened regulatory scrutiny, the Philippines’ online gaming market continues to expand rapidly. PAGCOR reported total GGR of PHP214.75bn in the first half of 2025, representing a 26% year-on-year increase. While land-based gaming revenue declined by 5.85% to PHP93.36bn, e-games revenue surged by 82.67% to PHP114.83bn, highlighting the accelerating shift towards digital gambling.
Looking ahead, industry forecasts suggest sustained growth. Estimates cited by Filipino Business Hub indicate that the Philippines’ online gaming market could generate PHP103bn by 2027, driven by a young, digitally engaged population and strong mobile penetration. Gartner has also ranked the Philippines among the world’s leading markets for mobile gaming readiness, underlining the country’s increasingly sophisticated digital infrastructure.
