The Philippine Amusement and Gaming Corporation (PAGCOR) recently announced that the implementation of the minimum guaranteed fee for electronic gaming system administrators, originally scheduled for April, has been postponed to June 1, providing the industry with a two-month buffer period. This decision reflects PAGCOR's subtle stance in trying to find a balance between industry regulation and operator survival pressure. Looking at Southeast Asia as a whole, the charging models and regulatory approaches to online gambling vary widely—some have entered refined operations, some are still exploring legalization paths, and others choose to completely block it. Looking at neighboring countries, the Philippines' MGF system is indeed in a relatively advanced position within the region.
Philippines: From "One Size Fits All" to Refined Operations, PAGCOR's Compliance Ambition
First, look at the Philippines. According to PAGCOR's new regulations, GSAs providing electronic casino games have a minimum GGR threshold of 30 million pesos (about $500,000), with a corresponding MGF of 9 million pesos (about $150,000); GSAs not offering electronic casino games have a GGR threshold of 15 million pesos, with an MGF of 3 million pesos. The second phase, starting from January 2027, will see the GGR thresholds increase to 35 million and 20 million pesos respectively, with MGFs rising to 10.5 million and 4 million pesos -5.
This policy is not unfounded. Industry data shows that among the 65 GSAs certified by PAGCOR, only about 25 can meet the 30 million peso threshold per month. This means that if the original policy had been implemented on time, more than 60% of operators would have faced a situation of "expenses exceeding income" -5. PAGCOR explicitly stated in a memorandum last December that the introduction of MGF aims to "plug the loopholes in the current charging structure" and to advance reforms based on the principles of fairness, accountability, and fiscal responsibility -2. The Philippines' approach essentially involves setting a fixed cost threshold, transferring some operational risks to businesses, and also forcing the industry towards intensification and standardization.
It is worth noting that PAGCOR has also shown some flexibility in rate adjustments in recent years. In January 2025, PAGCOR reduced the electronic gaming rate from 35% to 30%, with PAGCOR Chairman and CEO Tengco stating, "Reducing the rate encouraged unregistered online gambling operators to move to the legal market, creating a more favorable regulatory environment" -. The Philippine fee system also sets differentiated license fees for different types of operators: the PIGO license for domestic players requires a paid-up capital of 100 million pesos, 30% of GGR as a regulatory fee (or 15 million pesos per month, whichever is higher); the POGO license for overseas players requires 5% of GGR plus a fixed fee of $10,000 per month -63.
Vietnam: $200 Million Investment Threshold, Online Gambling Still in the Prohibited Zone
Next, look at Vietnam. Vietnam's gambling policy can be summarized as "high threshold, strict control". According to Decree No. 03/2017/ND-CP, only integrated resort projects with an investment scale of over $2 billion are eligible for a casino license. Online casinos and online gambling are explicitly prohibited by Decree No. 147/2024/ND-CP, especially casino-style and card games are completely excluded from the digital environment -12.
The legalization of sports betting in Vietnam is extremely limited, only allowed in pilot areas for horse racing, dog racing, and international football matches, with strict limits on betting amounts. Operators are required to pay a 5% income tax. A consumption tax law passed in 2025 took effect in January 2026, imposing a new consumption tax on gambling activities. Simply put, Vietnam basically has "no cards to play" in terms of online gambling fees, as the entire online gambling market is legally blocked.
Cambodia: Heavy Asset Access for Offline, Comprehensive Prohibition of Online Gambling
The situation in Cambodia is similar to Vietnam, but with different policy details. According to the Comprehensive Resort and Commercial Gambling Management Law enacted in 2020, casino licenses are divided into two categories: licenses in Promoted Zones have a validity period of up to 20 years, while those in Favored Zones are valid for 5 years. The capital requirements are quite high: about $200 million for integrated resort projects and about $100 million for ordinary casinos -22. In terms of tax rates, the GGR tax rate ranges from 4% to 7%, depending on the type of gambling and location.
In terms of online gambling, Cambodia's stance is very clear—since 2019, it has strengthened law enforcement and completely prohibited both locals and foreigners. The Commercial Gambling Management Committee is responsible for supervising license issuance, policy formulation, and law enforcement -22. Similar to Vietnam, Cambodia currently does not have an online gambling GSA fee system like the Philippines, focusing all regulatory efforts on physical casinos.
Laos: From Physical Casinos to Offshore Online, Policy is Turning
Laos is experiencing a policy shift. According to a 2025 report, the Lao government is considering issuing licenses to offshore online gambling operators targeting foreign markets, rather than local players. Previously, Laos' casinos were mainly located in special economic zones (such as the Golden Triangle Special Zone), specifically targeting foreign tourists, with a total investment in physical casinos exceeding $644 million and monthly visitors ranging from 8,000 to 10,000 -31. In 2025, a presidential decree established a fixed tax rate system based on the number of gambling tables and slot machines, with annual fees expected to increase by about $3 million to $8 million -.
It is worth noting that Laos previously did not have a dedicated online gambling regulatory agency or comprehensive legal framework. However, the revised Investment Promotion Law of 2024 and provincial tax authorization reforms indicate that Laos is updating its legal framework to attract international investment and provide transparency in tax planning -31. The online gambling license framework is under development, with the direction being to emulate the Philippines' POGO model, specifically targeting the offshore market. That is, Laos is transitioning from "zero regulation" to "regulated but targeting offshore", but as of now, no detailed fee policy like the Philippines' MGF has been implemented.
Thailand: Legalization Underway, Policy Details Yet to Be Finalized
Thailand is the most active in the wave of gambling legalization in Southeast Asia. The government is accelerating the process of incorporating legal casinos into the "entertainment complex" legislation, hoping to complete the legislation during the current government's term (until June 2027). The investment is expected to be at least 100 billion baht (about $3 billion), contributing about 12 billion to 39.2 billion baht in taxes to the treasury each year -39. However, the entertainment complex draft explicitly prohibits online gambling, and Thai citizens wishing to enter casinos must pay an entry fee of 5,000 baht and provide a bank deposit certificate of at least 50 million baht, setting a very high threshold -39.
In terms of online gambling, subtle changes are occurring in Thailand. According to the Bangkok Post, the Thai government has begun preliminary discussions on promoting the legalization of online gambling, with formal research expected to be completed in the coming months -40. Currently, about 2 million to 4 million people in Thailand participate in online gambling, with annual transaction amounts reaching 500 billion baht, and Thaksin has suggested imposing a 20% tax on online gambling revenue -. However, this figure is still a proposal and far from being implemented. Thus, Thailand's current situation is: physical casino legalization is progressing, online gambling legalization is still in the "talking stage", and the fee policy is completely blank.
Myanmar: Online Gambling Illegal, New Law Intensifies Crackdown in 2025
The situation in Myanmar is the most straightforward. According to the 2019 Gambling Law, casinos are allowed to operate but only for foreigners. In terms of online gambling, the Cybersecurity Law, which took effect on January 1, 2025, explicitly criminalizes the unauthorized operation of online gambling systems, with penalties including imprisonment and fines. Currently, there is no clear channel for applying for online gambling licenses under the legal framework -54. Myanmar has also established a Central Supervisory Committee to combat online fraud and online gambling and plans to establish a National Anti-Fraud Center in the 2026-2027 fiscal year -. Online gambling fees—non-existent.
Horizontal Comparison: Why the Philippines "Leads" Southeast Asia
Comparing the policies of various countries, it is clear that the Philippines holds a leading position in the online gambling fee system:
Policy Maturity: The Philippines has a clear phased implementation plan for MGF, with a complete list of 65 certified GSAs, and the policy has entered the "implementation phase". Vietnam, Cambodia, and Laos are in the "partially legal, partially prohibited" middle ground, with basically no online gambling fee systems. Thailand is in the legislative process, with policies yet to be implemented. Myanmar completely prohibits online gambling, with no fees involved.
Fee Logic: The Philippines adopts the MGF model of "fixed monthly fee + income threshold", essentially a minimum income guarantee mechanism, institutionalizing the industry entry threshold. Other countries either have no fees (online gambling is banned) or the fee model is still under discussion.
Market Positioning: The Philippines covers both domestic and overseas markets with its dual-track PIGO and POGO systems. Laos is emulating the POGO model to develop offshore online gambling. Thailand, Vietnam, and Cambodia's physical casinos mainly target foreign tourists, with severe restrictions on the domestic market.
Entry Mechanism: The Philippines has set clear license categories and fee standards, with relatively clear operating thresholds. Vietnam requires a $2 billion investment to obtain a casino license, representing "ultra-high entry barriers". Cambodia's capital requirements are also quite high. Thailand is establishing a new entry framework through the "entertainment complex" bill.
From these comparisons, it is evident that while Vietnam, Cambodia, and Laos are still engaged in heavy asset gambling around physical casinos, the Philippines has already taken the lead in establishing a systematic fee and regulatory system in the online gambling field. Although PAGCOR's MGF policy faces the practical dilemma of "only 25 out of 65 meeting the standard" at the implementation level, the signal it sends is clear: online gambling is no longer a wild growth in a gray area, but is to be incorporated into a standardized track, playing by the rules. The online gambling legalization that Thailand is brewing, once implemented, may become another important variable in the region. For more updates on Southeast Asian gambling policies and regulations, continue to follow PASA official website.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel:https://t.me/pasa_news
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