PAGCOR Guidelines on Multi-Currency Electronic Gaming Machines Explained
Learn how PAGCOR's multi-currency electronic gaming machines guidelines work, including BSP rates, acceptable currencies, and daily FX updates for licensees.
Multi-currency electronic gaming machines (EGMs) in the Philippines are governed by PAGCOR's Regulation 4 (Electronic Gaming Machines), Section 12, as revised by the PAGCOR Board of Directors in its meeting on November 22, 2023. Under these guidelines, foreign currency cash-in on EGMs is converted to its Philippine peso (PhP) equivalent for gaming purposes only, using the casino's Cage rate, which must stay within plus or minus two percent (+/- 2%) of the Bangko Sentral ng Pilipinas (BSP) rate. Licensees must also maintain and update foreign exchange rates daily.
What the revised PAGCOR guidelines cover
The December 6, 2023 revision applies to all PAGCOR licensees operating multi-currency EGMs. It amends three areas of Regulation 4, Section 12: the general guidelines on foreign exchange conversion, the list of acceptable currencies, and the maintenance of foreign exchange rates.
The revision is identified by Reference Nos. V4-A003-2023, CV2-A003-2023, FV2-A003-2023, and GF1-A001-2023.
How foreign currency cash-in is converted
When a player feeds foreign currency into a multi-currency EGM, the amount is converted to its Philippine peso equivalent for gaming purposes in the EGMs only. The conversion does not create a general foreign exchange service; it is limited to the gaming transaction.
The exchange rate used is the casino's Cage rate. This rate is not freely set. Under the revised guidelines, the Cage rate must fall within a variance rate threshold of plus or minus two percent (+/- 2%) of the BSP rate. In practice, this means the casino's posted rate must track the BSP's prevailing rate closely, protecting players from rates that deviate significantly from the official benchmark.
Which currencies EGMs must accept
The revision distinguishes between two configurations of EGMs.
For EGMs with multi-currency bill validators, the machines must accept valid bills of Philippine peso, United States dollar, and Hong Kong dollar. These are the currencies expressly named in the guidelines for multi-currency configured machines.
For EGMs configured to accept other currencies aside from those stated, the machines must be configured to accept valid bills of PHP or any permitted currency under the PAGCOR Technical Standards for Electronic Gaming Machines version 1.0. This means the acceptable currency list is not limited to the three named currencies; other currencies may be accepted if they are permitted under the PAGCOR Technical Standards.
Who updates the foreign exchange rate, and how often
The guidelines require daily updating of the foreign exchange rate. The update is carried out by the representatives of the Licensee in close coordination with the PMT.
The daily updating must be done at the PMT's Office and should be witnessed by the PMT along with representatives of the Licensee. This creates a documented, supervised process rather than an internal, unverified rate update.
Why the rules matter for licensees
These requirements serve two purposes. First, the +/- 2% variance threshold tied to the BSP rate keeps currency conversion consistent and transparent for players. Second, the witnessed daily updating requirement creates accountability, ensuring the rate used in the EGMs reflects a current and verifiable benchmark.
For licensees, compliance is not optional. The guidelines form part of Regulation 4, Section 12, and apply to all licensees operating multi-currency EGMs. Operators should confirm that their bill validators accept the required currencies, that their Cage rate stays within the permitted threshold, and that their daily rate updates follow the PMT-supervised procedure.
Frequently asked questions
What exchange rate do multi-currency EGMs use in the Philippines? The casino's Cage rate, which must be within plus or minus two percent (+/- 2%) of the BSP rate.
Which currencies must multi-currency EGMs accept? EGMs with multi-currency bill validators must accept Philippine peso, United States dollar, and Hong Kong dollar. Machines may also accept other currencies permitted under the PAGCOR Technical Standards for Electronic Gaming Machines version 1.0.
How often must the foreign exchange rate be updated? Daily. The update is done by the Licensee's representatives in close coordination with the PMT, at the PMT's Office, and should be witnessed by the PMT and Licensee representatives.
Practical takeaways
- Foreign currency cash-in on multi-currency EGMs is converted to Philippine peso for gaming purposes only.
- The conversion rate is the casino's Cage rate, which must stay within +/- 2% of the BSP rate.
- Multi-currency bill validators must accept PHP, USD, and HKD; other currencies are allowed if permitted under the PAGCOR Technical Standards version 1.0.
- Foreign exchange rates must be updated daily, at the PMT's Office, witnessed by the PMT and Licensee representatives.
- The rules come from the November 22, 2023 PAGCOR Board approval revising Regulation 4, Section 12, released to licensees on December 6, 2023.
Primary sources
The rules discussed above are drawn from the following PAGCOR issuances, embedded here in full for your reference.
Revision of the Guidelines Covering Multi-Currency Electronic Gaming Machines with Reference Nos: V4-A003-2023, CV2-A003-2023, FV2-A003-2023, GF1-A001-2023Open 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.
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