PAGCOR delays MGF rollout; Expert says move offers relief
The Philippine Amusement and Gaming Corporation (PAGCOR) has deferred the implementation of minimum guaranteed fees (MGFs) for iGaming operators to 1 June. The regulator cited the current economic crisis as justification for the delay. The new fee structure was initially set to begin this month.
The two-month postponement comes amid a national energy emergency declared by President Ferdinand Marcos Jr., driven by oil supply disruptions linked to geopolitical tensions in the Middle East.
Speaking exclusively with SiGMA News, gaming industry veteran Jonas Diego described the move as both necessary and measured. “I think it’s a pragmatic move given our recent challenges because of the surging oil price caused by the war in the Middle East,” he said. “It provides operators short-term relief, though of course it also delays revenue collection for PAGCOR.”
The revised timeline shifts the first tranche of MGFs, originally scheduled for April through September, to June through December 2026, with a second increase planned for January 2027.
Smaller firms gain breathing space, larger players press ahead
According to Diego, the immediate impact of the deferment will vary significantly depending on operator size and financial resilience.
“I see the deferment as particularly beneficial for small to medium operators from a liquidity standpoint,” Diego said. “The big boys have the cash reserves to absorb regulatory costs without disruption, but for mid-tier firms, the two-month reprieve provides valuable breathing room.”
According to Diego, operators are unlikely to adopt a uniform approach to the deferment. “Not all operators will approach the MGF delay in the same way,” he explained. “Smaller firms are likely to conserve working capital (e.g., directing funds toward payroll, marketing, etc.) rather than locking it into regulatory fees.”
He added that this cautious approach reflects broader uncertainty. “This makes sense given the uncertainty around both the Middle East situation and PAGCOR’s next steps once the 2-month reprieve ends.”
In contrast, larger operators may use the delay as a strategic window to accelerate growth. “The bigger players will likely move aggressively to capture market share and expand their footprint, while smaller operators may tread more cautiously, constrained by thinner margins for error.”
The divergence in strategy could have structural implications for the market. “For some, this environment could further incentivise mergers and acquisitions as a way to scale and compete more effectively,” Diego said. “That being said, it may also push weaker operators to consider exiting the Philippine market altogether.”
Market remains attractive, but entrants cautious
Despite near-term challenges, the Philippines continues to offer opportunities for growth, though Diego said that investor sentiment is becoming more measured.
“Overall, I believe the Philippines remains an attractive market,” Diego said. “That said, recent developments (i.e., PAGCOR’s new B2B rules, the looming MGF, and geopolitical uncertainty) will make potential entrants more cautious.”
Adaptive regulation or added uncertainty?
The deferment also raises broader questions about the balance between regulatory flexibility and predictability. For Diego, PAGCOR’s move reflects an adaptive approach.
“By deferring fees, PAGCOR shows it can adjust policy in response to economic stressors, protecting industry stability. Aligning regulatory timelines with broader national priorities (energy, inflation, liquidity) signals a willingness to balance state revenue needs with operator viability.”
At the same time, he acknowledged that uncertainty is an entrenched feature of the Philippine iGaming landscape. “Any operator in the Philippine market will tell you that they have been dealing with uncertainty for a long time. So much so that scenario-based planning has become an essential part of their long-term planning process.”
For established players, this environment is unlikely to come as a surprise. “While more uncertainty is certainly not welcome, I don’t think a little more will make too much of a difference with most of the existing operators in the Philippine iGaming market. No doubt some players will even see opportunity in that uncertainty.”
However, the implications are different for new entrants weighing their options. “I see uncertainty as more affecting potential entrants in the Philippine iGaming industry who weigh unpredictability more heavily when considering market entry,” he concluded.
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