Minimum Guaranteed Fee for Gaming System Administrators: PAGCOR Rules

A Gaming System Administrator (GSA) accredited by PAGCOR must pay a Minimum Guaranteed Fee (MGF) per month beginning April 1, 2026. The MGF is a fixed floor amount, and the GSA is assessed whichever is higher: the prescribed MGF or the applicable percentage-based License Fee (LF) or PAGCOR Share (PS). The PAGCOR Board of Directors approved the MGF in its meeting on 04 December 2025, through a memorandum issued by the Electronic Gaming Licensing Department (EGLD) on 15 December 2025.

What the Minimum Guaranteed Fee is and why PAGCOR imposed it

The MGF is a monthly minimum payment owed by every accredited GSA. PAGCOR adopted it to address gaps in the current fee structure and to uphold fairness, accountability, and fiscal responsibility. According to the memorandum, the reform ensures all accredited GSAs contribute equitably to national revenue, promotes active and transparent operations, and reinforces the government's commitment to a sustainable, accountable, and integrity-driven gaming industry.

MGF rates: first and second tranches

The MGF is implemented in two tranches, and the rate depends on whether the GSA offers Electronic Casino Games.

First Tranche (April 1 to September 30, 2026):

• GSAs with Electronic Casino Games: minimum GGR of PhP30,000,000.00 per month; MGF of PhP9,000,000.00.
• GSAs without Electronic Casino Games: minimum GGR of PhP15,000,000.00 per month; MGF of PhP3,000,000.00.

The first tranche is subject to review by the EGLD upon lapse of the initial six months.

Second Tranche (October 1 onwards):

• GSAs with Electronic Casino Games: minimum GGR of PhP35,000,000.00 per month; MGF of PhP10,500,000.00.
• GSAs without Electronic Casino Games: minimum GGR of PhP20,000,000.00 per month; MGF of PhP4,000,000.00.

A GSA offering Electronic Casino Games, whether exclusively or alongside other game offerings, is subject to the MGF applicable to Electronic Casino Games. A GSA offering gaming products excluding Electronic Casino Games is subject to the MGF for its category.

Assessment, reckoning, and billing

The GSA is assessed the higher of the prescribed MGF or the applicable percentage-based LF or PS. Given the weekly remittance of LF or PS by GSAs and their Operators, a monthly reckoning of transactions is conducted. The Accounting Department (AD) notifies each GSA of the applicable MGF in accordance with its guidelines.

A Statement of Account or Billing is sent to GSAs by the AD on or before the tenth (10th) of the following month, payable on the fifteenth (15th) of the same month.

When the MGF starts for newly accredited and existing GSAs

The MGF takes effect on all transactions commencing April 1, 2026, for GSAs with operational status.

• A GSA granted new accreditation is given a six-month period from the date of approval to commence operations. Upon lapse of this period, the MGF is imposed regardless of operational status.
• A GSA with existing accreditation but without a Notice to Commence Operations is given a two-month period to commence operations. Failure to do so results in imposition of the MGF.
• A GSA that receives a Notice to Commence Operations during any part of a calendar month is subject to a pro-rated MGF for that month.

Requests for extension of the non-imposition period, citing valid and justifiable grounds, are subject to the approval of the PAGCOR Board of Directors.

Penalties, suspension, and accreditation risks

Failure to remit the MGF within the prescribed period, as determined by the AD, results in interest charges and the automatic deduction of the corresponding amount from the GSA's Performance Cash Deposit (PCD) on the twentieth (20th) day of the month. The GSA must replenish the PCD within thirty (30) calendar days from receipt of official notice. A penalty or interest of twelve percent (12%) per annum is imposed on delayed payments.

Failure to meet the prescribed minimum GGR for five cumulative months triggers a Final Warning and a comprehensive evaluation of the GSA's continued suitability for accreditation. Adverse findings may result in cancellation of accreditation, subject to a sixty (60)-day return period for player deposits.

A GSA applying for temporary suspension upon implementation of the MGF is charged a monthly administrative fee equivalent to fifty percent (50%) of the applicable MGF. The suspension period cannot exceed two months, and failure to resume operations thereafter results in cancellation of accreditation.

Offering Electronic Casino Games without prior declaration and approval from PAGCOR through the EGLD is subject to administrative penalties, which may include suspension or cancellation of accreditation.

Frequently asked questions

How much is the PAGCOR Minimum Guaranteed Fee for Gaming System Administrators? It depends on the tranche and category. From April 1 to September 30, 2026, it is PhP9,000,000.00 for GSAs with Electronic Casino Games and PhP3,000,000.00 for those without. From October 1 onwards, it is PhP10,500,000.00 and PhP4,000,000.00 respectively.

When does the MGF take effect? The MGF takes effect on all transactions commencing April 1, 2026, for GSAs with operational status.

What happens if a GSA fails to pay the MGF on time? Interest charges apply, and the unpaid amount is automatically deducted from the GSA's Performance Cash Deposit on the 20th day of the month. The GSA must replenish the PCD within thirty calendar days from receipt of official notice.

Practical takeaways

• The MGF is a monthly floor: pay the higher of the MGF or the percentage-based License Fee or PAGCOR Share.
• Rates rise in the second tranche beginning October 1, and GSAs offering Electronic Casino Games pay the higher category.
• Billings arrive on or before the 10th of the following month and are payable on the 15th.
• Delayed payments carry 12% annual interest and trigger automatic PCD deduction on the 20th.
• Missing the minimum GGR for five cumulative months can lead to a Final Warning and possible cancellation of accreditation.

Primary sources

The rules discussed above are drawn from the following PAGCOR issuances, embedded here in full for your reference.

Regulatory Framework for the Fees and Rates on Gaming Venue Operations Rev. No. 5Open in Law LibraryDownload PDF

Memorandum on Imposition of Minimum Guaranteed Fee to Gaming System AdministratorOpen in Law LibraryDownload PDF

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.