Memorandum on Imposition of Minimum Guaranteed Fee to Gaming System Administrator

Philippine Amusement and Gaming Corporation

PAGCOR I-GAMING LICENSING AND REGULATION GROUP BAGONG PILIPINAS

Electronic Gaming Licensing Department

MEMORANDUM 15 December 2025

TO ALL GAMING SYSTEM ADMINISTRATORS

ALL GAMING VENUE OPERATORS

FROM THE OFFICER-IN-CHARGE

SUBJECT IMPOSITION OF MINIMUM GUARANTEED FEE TO GAMING

SYSTEM ADMINISTRATORS

In order to address the gaps in the current fee structure and uphold the principles of fairness, accountability, and fiscal responsibility, please be informed that the PAGCOR's Board of Directors approved in its meeting on 04 December 2025 the implementation of a Minimum Guaranteed Fee (MGF) per month.

The introduction of an MGF per month is a timely and necessary reform that will ensure all accredited Gaming System Administrators (GsA) contribute eguitably to nationa revenue, promote active and transparent operations, and reinforce the government's commitment to a sustainable, accountable, and integrity-driven gaming industry.

1. The MGF shall be implemented as follows:

1st Tranche(April 1 to September 30,2026)

Category Revenue (GGR) per month Minimum Gross Gaming MGF

GSAs with Electronic Casino Games PhP30,000,000.00 PhP9,000,000.00

Casino Games GSAs without Electronic PhP15,000,000.00 PhP3,000,000.00

Subject to review by the EGLD upon lapse of the initial six (6) months.

2nd Tranche (October 1 onwards)

Category Minimum GGR per month MGF

Casino Games GSAs with Electronic PhP35,000,000.00 PhP10,500,000.00

MET Live Building. Metro Park,EDSA Extension corner Pres. Diosdado Macapagai Bivd, Pasay City, Metro Manila Website: www.pagcor.ph PG0ES25 - 1652

GSAs without Electronic Casino Games PhP20,000,000.00 PhP4,000,000.00

where, the following provisions shall apply:

a. GSAs shall be assessed the higher of the prescribed MGF or the applicable percentage-based License Fee (LF) or PAGCOR Share (PS).

b. GsAs offering Electronic Casino Games, whether exclusively or in conjunction

with other game offerings, shall be subject to the MGF applicable to Electronic Casino Games.

C GSAs offering gaming products excluding Electronic Casino Games shall be

subject to the corresponding MGF applicable to their category.

d. Any GSA found to be offering Electronic Casino Games without prior

declaration and approval from PAGCOR (through the EGLD) shall be subject to administrative penalties, which may include the suspension or cancellation of accreditation, as warranted.

e. The imposition of the MGF shall take effect on all transactions commencing

April 1, 2026, for GSAs with operational status.

f Given the weekly remittance of LF or Ps by GSAs and their respective

Operators, a monthly reckoning of transactions shall be conducted. The Accounting Department (AD) shall notify each GSA of the applicable MGF, in accordance with AD's guidelines.

g. GSAs granted new accreditation shall be afforded a six (6)-month period from the date of approval to commence operations. Upon lapse of this period, the

MGF shall be imposed regardless of operational status.

h. GSAs with existing accreditations but without a Notice to Commence

Operations shall be given a two (2)-month period to commence operations. Failure to do so shall result in the imposition of the MGF.

GSAs that receive a Notice to Commence Operations during any part of a caiendar month shall be subject to a pro-rated MGF for that month.

Requests for extension of the non-imposition period of the MGF, citing valid and justifiable grounds, shall be subject to the approval of the PAGCOR's Board of Directors.

k. Failure to remit the MGF within the prescribed period, as determined by the

AD, shall result in the imposition of interest charges and the automatic deduction of the corresponding amount from the GSA's Performance Cash

Deposit (PCD) on the twentieth (2oth) day of the month. The GSA shall replenish the PCD within thirty (30) calendar days from receipt of official notice.

Failure to meet the prescribed minimum GGR for five (5) cumulative months shall trigger the issuance of a Final Warning and a comprehensive evaluation of the GsA's continued suitability for accreditation. Adverse findings may result in the cancellation of accreditation, subject to a sixty (60)-day return period for player deposits.

m. GSAs applying for temporary suspension upon implementation of the MGF

shall be charged a monthly administrative fee equivalent to fifty percent (50%) of the applicable MGF. The suspension period shall not exceed two (2) months. Failure to resume operations thereafter shall result in the cancellation of accreditation.

2. The GSAs must ensure that the required PCDs are duly posted/replenished at any

given time.

3 The GSAs shall comply with the procedures to be formulated and impiemented by AD for the implementation of the imposition of MGF.

Statement of Account/Billing will be 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.

5. Imposition of the penalty/interest of twelve percent (12%) per annum on delayed

payments.

6 Automatic forfeiture/application of PCD on the 20th day of the month for the unpaid

MGF.

For your information and guidance.

Thank you.

JESSA MARIZ R. FERNANDE: ud

CC: AVP, AD A/AVP, CMED-EG VP, MEG OCCEO