These changes clarify tax revenue-sharing ratios and introduce mandatory fees for system providers.

Tax Adjustments: Relief for Sports Betting, Stability for Virtual Sports

Effective retroactively to the November 2025 billing cycle, the tax rate for Live Sports Betting has been set at 15% of Gross Gaming Revenue (GGR). This represents a significant decrease from the 22.5% peak in 2023, aimed at reducing operator costs and boosting competitiveness. Meanwhile, Virtual Sports remains stable with a 30% tax rate.

Tightened Oversight: GSA Minimum Guaranteed Fees

New financial obligations have been introduced for Gaming System Providers (GSAs). Starting April 1, 2026, all certified GSAs—regardless of whether they involve eGames—must pay a monthly "Minimum Guaranteed Fee" to Pagcor. This measure is designed to strengthen oversight of backend providers and secure government revenue.

Industry Outlook: Compliance as a Long-term Priority

Analysts believe Pagcor’s move to lower taxes and eliminate "gray areas" is intended to attract legitimate international investment through a refined regulatory framework. While the tax environment has improved, the granular nature of new regulations (such as GSA fees) means compliance costs are becoming more transparent. For operators in the Philippines, maintaining high compliance remains the only path to securing long-term licenses.