Oil price shock weighs on Philippines gaming sector

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MANILA, Philippines — The Philippine gaming industry is starting to feel the burden of soaring oil prices on business activity and mobility amid the ongoing Middle East war, the state gaming regulator said.

In a statement, Philippine Amusement and Gaming Corp. (PAGCOR) chairman and CEO Alejandro Tengco said the impact of rising fuel costs is already visible on the ground.

“This is not a good time for everyone,” he said.

“Gaming jurisdictions globally are feeling the impact of the oil crisis, and even more progressive countries like Singapore, Macau and the United States are not spared,” Tengco added.

The Philippines is currently under a year-long state of energy emergency as the US?Israel strikes on Iran led to a surge in oil prices, living costs and spiked electricity costs back home.

President Marcos earlier ordered the suspension of fuel excise taxes on liquefied petroleum gas and kerosene, excluding diesel and gasoline.

Tengco also noted that external pressures are affecting not only gaming operators but also the local gaming industry stakeholders.

In response, Tengco assured the public that the gaming regulator is ready to adjust its approach in response to changing circumstances.

“At PAGCOR, we will adjust what we need to do. We have to be in tune with the times and ensure that responsible gaming remains at the center of what we do,” he said.

Tengco also cited the need to maintain engagement across the sector amid uncertainty, as well as to sustain consistent dialogue and collaboration in navigating evolving market conditions.

In a separate memorandum, the state gaming regulator has deferred the implementation of the new monthly Minimum Guaranteed Fee (MGF) for licensed gaming operators for two months, “in consideration of the current economic crisis.”

MGF is a monthly fee for accredited gaming system administrators (GSAs) aimed at addressing gaps in the current fee structure, originally planned to start in April.

Under the amended timeline, PAGCOR said GSAs operating electronic casino games with a minimum gross gaming revenue (GGR) of P30 million will be required to pay a P9 million first tranche covering the period from June 1 to Dec. 31.

GSAs without electronic casino games and with a minimum GGR of P15 million are required to remit P3 million.

Meanwhile, the second tranche will be deferred to Jan. 1, 2027. GSAs with electronic casino games and posting a minimum monthly GGR of P35 million will be charged a P10.5-million fee.

Those without electronic casino games earning a minimum of P20 million in GGR per month will be required to pay P4 million.