Mergers loom as new rules reshape Philippine iGaming

Regulation pushes companies to rethink size

The Philippine iGaming market may soon look very different. New rules from PAGCOR are forcing operators to review how they operate and compete. The changes are expected to take effect in April, giving companies little time to adjust.

Regulators appear focused on order and long-term growth — not punishment. Licences no longer promise easy profits. Oversight now plays a larger role in daily operations and future plans.

This shift affects smaller operators first. Casinos offering only one service may struggle under higher costs. Some may exit the market. Others may look for partners to survive. Either way, consolidation now looks likely.

Fees increase pressure on smaller operators

One major concern is the Minimum Guarantee Fee, or MGF. The fee applies even when revenue falls, creating pressure across the market. Smaller companies feel the impact most, though larger firms are not immune.

Scale now matters more than before. Single-service casinos may lack the income needed to meet new requirements. Merging with other operators could spread costs and reduce risk. As a result, discussions around mergers and alignments are increasing.

This trend does not signal failure alone. It reflects companies adjusting to tougher expectations. Hence, consolidation appears to be a practical response.

April rules could change licence structures

Another major shift may arrive in April with new licensing rules. Industry executives expect licences to combine rather than disappear. Several permits could merge into broader approvals. Possible changes include:

• sports betting licences joining e-casino permits

• bingo licences combining with other gaming operations

These changes may reduce overlap and simplify oversight. Nevertheless, compliance standards are expected to tighten further. Companies will need clearer reporting and stronger controls.

Online-only models lose appeal

The new rules also affect how casinos operate. Online-only businesses now appear harder to sustain. Current requirements push online licensees to support physical gaming locations.

As a result, many operators are turning to hybrid models — mixing online systems with land-based gaming halls. This setup costs more but improves regulatory standing. It also helps meet PAGCOR’s monitoring needs.

A transition period before growth

Industry leaders expect the first half of 2026 to focus on adjustment. Companies may spend months aligning with the new framework. Growth is likely to wait.

Recent figures show why caution matters — PAGCOR’s online gaming revenue reportedly fell 49 percent after earlier rule changes. The decline highlights how sensitive the sector is to regulation.

Subsequently, growth may return once the market settles. In the reshaped Philippine iGaming industry, size, compliance, and flexibility now determine survival.