PAGCOR Chairman commends Philippine licensees for resilience amid tightening regulation
PAGCOR Chairman and Chief Executive Alejandro H. Tengco has commended Philippine licensed operators for their resilience and willingness to comply with more stringent rules introduced this year.
Speaking at an Association of Independent Licensed Gaming and Amusement Operators event in Muntinlupa City on Wednesday, Tengco said e-games and e-bingo operators were navigating a difficult but necessary transition toward greater transparency and stricter safeguards in a bid to forge a more responsible industry.
“Tonight, we recognize all of you for being the backbone of the legitimate online gaming sector: innovating and adapting quickly, and staying compliant even when the rules become stricter,” he said. “You understand that integrity is the foundation of sustainability.”
Tengco acknowledged that recent reforms had prompted adjustments across the e-games sector, referring in particular to the delinking of e-wallets from online gaming platforms in August.
“You may be interested to know that in the third quarter of 2025, we recorded an industry GGR that was a bit lower than last year,” he said. “But this reflects an industry transitioning to stronger and safer practices.”
Tengco noted that the e-games and e-bingo segment still grew by 17.4% in the third quarter compared with the same period in 2024, but admitted that the de-linking policy triggered a temporary GGR decline in August and September.
“We know that many of you were affected by this sudden development,” he said. “However, we must not look at these reforms as obstacles but as safeguards designed to protect your players, your businesses, and the entire ecosystem you operate in.”
Tengco also warned that while legitimate licensees are adapting responsibly, illegal operators continue to expand aggressively without paying taxes or observing player protection protocols. “They expose players to financial fraud and data theft,” he said. “But the worst part is, they damage the reputation of the entire industry, including the legitimate ones.”
During the event, Tengco was presented with a ‘Gaming Exemplary Leadership Award’ in recognition of his support for licensed operators and his efforts in championing safer and more transparent gaming standards in the Philippines.
Association of Independent Licensed Gaming and Amusement Operators President Rafael Tabora thanked PAGCOR for its initiatives and pledged the group’s full cooperation. “We welcome these reforms because they strengthen the legitimacy of our operations and create a safer environment for our players,” he said.
Yesterday, Philippine operator DigiPlus unveiled a nationwide partnership with Pay&Go to provide self-service payment kiosks for BingoPlus users to top up their digital wallets. The operator plans to add the service for ArenaPlus and GameZone customers in the near future, as well as adding a cashout facility.
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The Backstory
Why the regulator is tightening the screws now
The Philippines’ online gaming sector is at an inflection point, shaped by a policy shift that favors tougher oversight without pulling the plug on growth. In remarks in Manila ahead of the IAG Expo, Philippine Amusement and Gaming Corp. Chairman and CEO Alejandro H. Tengco said the agency backs tougher rules rather than prohibition, arguing that a ban would cost the government billions in revenue and erase thousands of jobs. He framed the policy as a pragmatic response to technology and consumer behavior rather than an endorsement of gambling. In his view, regulated legal alternatives remain the best defense against illegal play and consumer harm. That stance, detailed in PAGCOR is for stricter regulation and not for a total ban, set expectations for the compliance push now reshaping e-games and e-bingo.
The regulator’s strategy has two tracks: raise standards for licensed operators and starve the black market. Tighter controls, such as delinking e-wallets from gaming platforms, aim to reduce fraud risk and improve traceability, even if they temporarily dent gross gaming revenue as players and platforms adapt. PAGCOR’s message to licensees has been consistent: adjust operations to meet stricter rules, lean into transparency and player protection, and differentiate from illegal operators that ignore taxes and safeguards. The near-term friction is meant to produce a more durable, socially licensed industry.
Economic stakes overshadow ban calls
The cost-benefit argument for regulated e-gaming has found allies beyond the regulator. Finance Secretary Ralph G. Recto said the Department of Finance opposes an outright online gambling ban and supports tighter oversight to manage social harms, citing a net positive economic impact when externalities are controlled. He noted that the sector’s share of GDP remains modest but material, and that regulatory clarity is essential to maintain revenue and contain risks. His comments, described in Finance Secretary favors regulation over online gambling ban, mirror PAGCOR’s reading of the landscape: the market has outgrown the idea that access to internet-based games can be rolled back, so policy should channel activity into compliant channels.
Those stakes have only grown as the industry tilts toward digital. PAGCOR has said e-games are now a majority contributor to the agency’s income, reflecting the shift from land-based play that accelerated during the pandemic. As lawmakers weigh proposals ranging from a ban to stricter guardrails, the risk for policymakers is that prolonged uncertainty empowers illegal operators and heightens social harm. The finance chief’s stance signals that the fiscal and enforcement implications of a ban are front of mind in cabinet-level deliberations.
Managing harm while the market scales
PAGCOR has tried to preempt criticism that higher revenues come at the expense of public welfare by expanding responsible gaming measures. Tengco used a recent conference to press for cross-sector action on problem gambling, urging regulators, operators, clinicians and researchers to coordinate on prevention and treatment. The regulator highlighted policies excluding minors, students and government workers from gaming venues, self-exclusion options, tighter advertising rules and partnerships with rehabilitation groups. The remarks, outlined in PAGCOR chairman calls for collaboration to fight gambling addiction, underscore a message to Congress and the public: revenue targets should not outrun safeguards.
This focus on consumer protection dovetails with the move to sever direct ties between e-wallets and gaming platforms. While the rule complicates user experience and operator workflows, it addresses moneyflow opacity and helps curb fraud. Operators are responding with alternative cash-in channels, such as new payment kiosk tie-ups, to keep compliant liquidity flowing. The transition illustrates how the regulator is trying to steer the market toward safer rails without triggering a demand shock that might push players to unlicensed sites.
Fiscal credibility and political cover
The government’s budget calculus is a powerful backdrop to the policy turn. PAGCOR has been recognized by the Department of Finance for remitting PHP12.7 billion in dividends to the treasury in 2024, ranking third among government-owned or controlled corporations. The recognition, reported in Philippine government honors PAGCOR for PHP12.7 billion contribution to treasury, strengthens the regulator’s argument that a well-policed market can fund public priorities without new taxes. It also gives PAGCOR political cover as it pushes operators to absorb compliance costs and as it separates its regulatory and operating functions to reduce conflicts of interest.
These fiscal flows are not a blank check. They invite scrutiny over whether earnings are sustainable under tougher rules and whether revenue growth can align with measurable reductions in social harm. But the dividend record helps explain why senior economic officials prefer calibration over prohibition. It also frames the stakes in ongoing congressional debates: rules that are too lax risk social pushback; rules that are too strict risk revenue leakage to illegal channels.
Chasing the illicit market
The crackdown on illegal operators is emerging as both a consumer protection imperative and a reputational battle for licensed firms. PAGCOR has warned the public about scams that impersonate the regulator and peddle fake licenses, pointing to a site that forged official-looking documents and signatures. The alert, detailed in PAGCOR issues nationwide warning over scam website, shows how fraudulent actors exploit brand confusion to recruit rogue operators and defraud applicants. The episode underscores the regulator’s two-front campaign: tighten compliance for legitimate players while coordinating with law enforcement and tech agencies to dismantle illegal networks.
For licensed operators, the compliance burden is also a competitive lever. Clear separation from the gray market can justify market access, advertising privileges and partnerships that are closed to unlicensed rivals. But the longer rulemaking drags, the more room illegal sites have to poach customers with looser onboarding and aggressive promotions. That dynamic explains PAGCOR’s emphasis on speed: reforms must land fast enough to shape behavior before bad actors entrench.
What the next few months could decide
Policy timing is pivotal. Lawmakers are weighing bills that could either codify stricter controls or move toward prohibition. The finance chief’s resistance to a ban and PAGCOR’s push for tougher, clearer rules suggest an eventual compromise that hardens safeguards while preserving a regulated market. The near-term metrics to watch are operator compliance with wallet decoupling, trends in gross gaming revenue as the rule beds in, the scale of self-exclusion and advertising enforcement, and visible actions against illicit operators.
If enforcement and consumer protections keep pace, the regulator can argue that a safer, more transparent ecosystem is taking hold even as revenues normalize. If not, political momentum could swing toward harsher measures. The industry’s response—investing in compliance systems, partnering on responsible gaming and differentiating from the black market—will help determine which way the debate breaks.
