Philippine online gaming operators are increasingly being forced to seek rescue capital, partnerships, or full exits as at least three in five gaming system administrators (GSAs) suffer from severe revenue crisis.

In an Aug. 19 report, regulatory and commercial advisory firm Arden Consult International Pte. Ltd. stated that over 60 percent of licensed gaming firms are struggling to hit the regulator’s minimum revenue targets.

“Arden’s operator-level data for the first half of 2026 indicates that more than 60 percent of licensed GSAs remained below the applicable minimum-revenue benchmark on second quarter run rates,” said Marie Antonette B. Quiogue of Arden Consult.

The Philippine Amusement and Gaming Corp. (Pagcor) reported that the domestic gaming industry’s gross gaming revenues (GGR) dropped by more than a fifth to ₱88.1 billion in Q2 2026—down from ₱110.6 billion year-over-year—driven by weaker electronic gaming revenues.

To ensure equitable contributions to state coffers, encourage active operations, and weed out underperforming or dormant operators, Pagcor recently introduced a Minimum Guaranteed Fee (MGF). The policy mandates a flat minimum fee of ₱9 million monthly for e-casino operators.

With over half of licensed operators falling short of these benchmarks, distressed entities are actively pursuing rescue capital, mergers, or complete exits—driving a sudden surge in "license offers" directed at foreign investors.

However, Arden warned that these illegal "license sales" are flawed. Foreign firms have limited options for direct entry due to Pagcor's March 2024 suspension on new GSA applications.

This regulatory freeze has allowed brokers to demand massive premiums, pushing license prices between $3 million and $15 million. Paying these fees carries immense risk: by law, these licenses are non-transferable and cannot be sold.

According to Arden’s legal guide, a GSA certificate is “a permit or privilege, not a contract or property right, and does not create a vested right. It also provides that the certificate cannot be transferred by sale, succession, gift or otherwise without the prior consent of the Pagcor Board.”

Quiogue also cautioned prospective investors against relying on intermediaries offering guaranteed approvals. “Pagcor does not recognize arrangements with brokers or ‘fixers’ who purport to sell influence or guarantee an approval, and investors should treat such representations—particularly requests for facilitation payments or success fees tied to a supposedly guaranteed outcome—as serious red flags.”

For foreign investors, waiting out Pagcor’s moratorium remains the safest strategy. Attempting to bypass regulatory procedures through unauthorized structures risks severe penalties, including license revocation, deposit forfeiture, and criminal prosecution under the Anti-Dummy Law, Arden warned.