ICE: PAGCOR preparing position paper outlining case for central bank to restore online gaming links to e-wallets
Philippine gaming regulator PAGCOR is compiling a position paper that it plans to present to the Bangko Sentral ng Pilipinas (BSP) – the central bank – in a bid to have it reverse the delinking of licensed online gaming sites from e-wallet providers.
PAGCOR Chairman and Chief Executive Alejandro Tengco revealed the plan in an exclusive interview with Inside Asian Gaming at ICE Barcelona on Tuesday, explaining that the position paper would outline the various safeguards PAGCOR has implemented across the domestic online gaming, or eGames, industry following Senate hearings held in 2025 in relation to the sector’s explosive growth.
“Before I left for Barcelona, I had already tasked a group within PAGCOR to study – after I gave them my thoughts – to put together a position paper that we can present to the Central Bank of the Philippines that hopefully will be able to explain the importance and what safeguards we have done to protect players,” Tengco told IAG. “Hopefully with that we will be able to convince them to allow linking once again of the payment providers to the eGaming operators.”
The central bank issued an order in August for e-wallet providers to unlink from online gambling platforms within 48 hours, a move it said was intended to prevent unauthorized transactions and improve monitoring of the online gaming sector. Critics of the order claim that by removing direct links to online gaming platforms, players no longer have any simple means of identifying licensed sites and are therefore more easily lured to illegal operations.
When asked by IAG on Tuesday if this was a key reason for compiling a position paper on the linking of e-wallets, Tengco added, “I think we need to show [the bank] that we have [implemented] big changes. That’s the most important thing.”
Despite the substantial impact delinking had on eGames revenues – PAGCOR recently highlighted a clear slowing of income generation in the September quarter – Tengco noted that the sector produced more than Php200 billion (US$3.4 billion)1 PHP = 0.0169 USD
2026-01-21Powered by CMG CurrenShift (US$3.37 billion) in GGR in 2025 to set a new all-time high.
“In spite of [the delinking], we set new record GGR in online gaming and that for me was a good feat in 2025,” he said.
“Now we are studying and looking to strengthen the B2B sector where we intend to license content providers, game providers and other marketing groups. We have also established a new Minimum Guaranteed Fee for online companies licensed by PAGCOR and this hopefully strengthens the industry.”
First published by Inside Asian Gaming, a Complete Media Group publication.
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The Backstory
How the payment crackdown began
The standoff between the Bangko Sentral ng Pilipinas and the gaming sector traces back to a Senate hearing where regulators pressed for faster guardrails on digital betting. In response, the central bank ordered e-wallet providers to strip in-app links and icons that connected users directly to gambling platforms, with a 48-hour window for compliance. Lawmakers argued the deadline was too lenient given reports of gambling-related harm. The order allowed players to visit gambling sites on their own but removed the most convenient pathways inside popular apps. That shift, detailed in the central bank’s delinking directive, reframed how Filipinos fund online wagers and set off a chain reaction across the industry.
The move coincided with intensifying scrutiny of illegal operators. Senators cited thousands of unlicensed gambling sites accessible to local players and demanded measures that would immediately cut off easy access from payments apps. The central bank prioritized removing the integration first, while deferring broader policy choices — such as a ban or tighter licensing — to Congress. That posture set up a parallel track: payments friction to blunt harm in the near term, and a legislative debate over where to draw the line between legal and illegal operations.
Revenue shock and a quick chill across the market
The effects were immediate. The Philippine gaming regulator said income slid sharply once e-wallet links were removed. PAGCOR’s monthly revenue fell to about half of pre-delinking levels in the weeks following the order, according to testimony at legislative hearings. The agency later quantified the damage in more detail, telling lawmakers that September revenue dropped to PHP2.9 billion from PHP5.7 billion in May, underscoring how quickly liquidity dried up once one-tap top-ups disappeared. Those declines were laid out in reports on the initial 40% to 50% income fall and a 49% month-on-month slide after the delinking.
Payment platforms also faced questions about how they previously treated gaming transactions. Lawmakers pressed for details on merchant fees and whether loan products could feed wagering. Central bank officials said they were drafting rules to cap bets, restrict gaming top-ups and bar the use of online loans for gambling — a package that would codify limits even if direct links are restored. The tightening push highlights a broader policy aim: reduce reliance on frictionless payments as the growth engine for online gaming, while leaving room for licensed operators to continue under stricter controls.
Illegal channels surged as licensed sites stumbled
One unforeseen consequence of the delinking surfaced quickly: a migration to the shadows. Data discussed by the central bank suggested traffic to unregulated platforms jumped while regulated sites lost users after the links disappeared. The central bank framed the risk in broader terms, warning that persistent illegal online gambling could put the Philippines back on the Financial Action Task Force’s grey list. That concern, which would carry reputational and compliance costs for the financial system, was aired in remarks covered in a report on the grey list warning.
The numbers gave regulators urgency. PAGCOR said online gambling transactions fell by up to half in the two days after delinking, signaling a rapid shift in player behavior and a potential opening for unlicensed operators to capture demand. The regulator emphasized support for tougher oversight instead of an outright ban and outlined new tools to fight illegal sites — both to stem the outflow and to assure financial authorities that enforcement can keep pace with digital adoption.
An AI offense and a recalibration of oversight
PAGCOR began to fashion a counterstrategy built on technology and compliance. Officials told senators the regulator would deploy an artificial intelligence tool to detect illegal websites in real time and coordinate blocks with cybercrime and telecom agencies. The plan, described during legislative hearings covered in the income impact report, aims to make takedowns faster and more consistent across agencies. It also signaled a shift toward proactive digital enforcement rather than reactive site-by-site blocking.
At the same time, the regulator has been revisiting how it licenses and monitors the business-to-business layer of the market, from content suppliers to service providers, as a way to strengthen compliance across the value chain. The posture reflects a balancing act: show credible, tech-driven oversight to financial regulators and lawmakers while preserving a channel for licensed eGaming to operate. Any restoration of e-wallet links would likely hinge on evidence that these safeguards can contain illegal spillover and protect consumers.
Corporate earnings confirm the pain points
Company filings reinforced the sector-wide impact from the payment clampdown. DigiPlus Interactive, one of the country’s largest digital gaming suppliers, reported a steep third quarter pullback that it tied to the e-wallet restrictions. The company’s net income fell 59% in the quarter while revenue slid 23%, according to disclosures summarized in a report on DigiPlus’ earnings drop. EBITDA declined 55% as player activity and in-app transactions slowed.
Even with that quarterly setback, DigiPlus pointed to nine-month growth driven by new products and retail performance, suggesting that diversification can buffer the impact of sudden policy shifts. The company also highlighted higher taxes and regulatory fee payments year to date, underscoring how government receipts are intertwined with the sector’s digital revenue streams. Those figures sharpen the policy trade-off: guardrails that curb harm and illegal activity versus the fiscal and employment footprint tied to licensed online gaming.
What the next decisions will decide
The central bank’s delinking order has reset the payment rails while lawmakers consider further limits. The regulator’s push for AI-driven enforcement and broader licensing oversight is meant to answer concerns raised by financial authorities and to reduce the lure of illegal sites that have filled the convenience gap. Reports on grey list risks and sharp revenue losses frame the stakes on both sides of the ledger.
What happens next hinges on whether policymakers are satisfied that licensed operators can keep players onshore, verify identities and transactions, and flag suspicious behavior without the frictionless in-app paths that previously fueled growth. If payments links remain severed without a parallel ramp-up in enforcement, illegal platforms could entrench their gains. If links are restored without tighter supervision, the country could face heightened financial integrity risks. The next wave of rules on betting limits, top-ups and lending — and the effectiveness of new enforcement tools — will determine which path prevails.
