PAGCOR pushes for stricter regulation of the igaming sector
Philippine gambling regulator PAGCOR has emphasized the need for more regulatory enforcement in the igaming industry to help sustain growth in the sector.
Speaking at ICE Barcelona last week, PAGCOR Chairman and CEO Alejandro Tengco said the recent growth of igaming has exposed regulatory gaps that need to be updated to keep up with demand.
“The greatest threat to both regulators and licensed operators is not higher standards,” Tengco told industry professionals at ICE. “It is the continued presence of illegal and unregulated actors that undermines trust and distorts competition.”
Tengco went on to use the Philippines as an example of enforcing stricter regulation, citing the country’s POGO ban in 2024, and described it as a regulatory reset.
PAGCOR also stepped up its approach to handling licensed operators, focusing more on identification and know-your-customer checks to protect vulnerable groups. The regulator also imposed more responsible gambling measures and tighter regulations on advertisements.
Tengco also mentioned that financial safeguards were added to strengthen regulation, such as imposing restrictions on payment channels and introducing a minimum fee for operators to promote a fairer environment.
“Regulation is not about avoiding discomfort,” Tengco added. “It is about building a system that is resilient, accountable, and worthy of public trust.”
In an exclusive interview with Inside Asian Gaming during ICE, Tengco revealed that PAGCOR was planning to make a bid to the Bangko Sentral ng Pilipinas to reverse its ban on e-wallets linking with gambling platforms.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
Verticals:
Sectors:
Topics:
Dig Deeper
Related stories
The Backstory
Why regulation is tightening now
Philippine regulators are moving to close gaps created by the rapid shift from land-based gaming to digital play. The catalyst has been a surge in online activity since the pandemic, accompanied by illegal operators that evade taxes and player safeguards. PAGCOR, the state regulator, has argued that higher standards are the practical response, not prohibitions. In broadcast remarks, Chairman Alejandro Tengco said effective oversight can protect users while preserving economic gains, citing roughly PHP50 billion collected from online gaming in 2024 and plans to distinguish licensed local sites from untaxed offshore platforms through better monitoring and enforcement. He also previewed new tools and coordination with other agencies to curb aggressive marketing and underage access. Those steps include a July 16 agreement with the Ad Standards Council to tighten billboard and prime-time TV rules, and work with regulators to address complaints about digital ads and pre-installed apps that target minors. The Department of Finance is also studying a dedicated online gambling tax to boost revenue. Read more on PAGCOR’s call for stricter online gambling rules and proposed measures in this overview.
Ban pressure and political crosswinds
Despite PAGCOR’s stance, ban advocates have gained traction. A Filipino lawmaker has floated a bill to prohibit online gambling outright, and religious leaders have criticized the regulator for backing digital gaming. The policy debate intensified after the government banned Philippine Offshore Gaming Operators in 2024, a move that reshaped the landscape and placed domestic e-gaming under a sharper spotlight. Tengco has countered that a blanket ban would erase billions of pesos in government revenue, eliminate thousands of jobs and push consumers toward unregulated sites, leaving them unprotected. He positioned regulation as the middle path, saying PAGCOR’s mandate is to protect people while keeping illegal operators at bay. The argument is rooted in data: e-gaming contributed a majority share of the regulator’s income in the first half, surpassing land-based sources for the first time as consumer behavior shifted online. For details on how PAGCOR is framing the stakes and the political pushback, see Tengco’s recent remarks rejecting a total ban.
Tools, guardrails and a pivot to oversight
PAGCOR’s enforcement plan blends technology and coordination. The regulator is preparing to invest in artificial intelligence to track player behavior, automatically flag risky patterns and trigger interventions such as self-exclusion or suspensions for unusual deposit spikes or sustained losses. It is also exploring AI-driven age verification to backstop the minimum age of twenty-one. Advertising is another frontline: regulators intend to restrict high-visibility placements and work across agencies to rein in digital marketing that reaches minors. The goal is to separate legal, compliant operators from overseas websites that target Filipinos without licenses, responsible gaming controls or tax obligations. It’s an approach meant to sustain growth, not suppress it. PAGCOR argues that once consumer demand has migrated online, the state’s best defense against harm is to channel play into regulated venues where identity checks, payment rules and affordability constraints can be enforced. This direction and the proposed tax framework are outlined in PAGCOR’s push for stronger online rules.
Payments squeeze tests the market
The shift to stricter oversight has already hit day-to-day operations. After the central bank ordered e-wallet providers to remove gambling links, PAGCOR oversaw a delinking of e-wallets from online gaming platforms in August. Tengco later acknowledged the move briefly dented industry gross gaming revenue in August and September, even as e-games and e-bingo still grew 17.4% year over year in the third quarter. He commended licensees for adapting to the new environment, arguing that short-term pain supports long-term sustainability by deterring fraud and shielding vulnerable users. The industry has responded by reworking payment rails. Operators are lining up alternatives such as self-service kiosks and third-party payment centers to keep legitimate players transacting while staying compliant. At an industry event, PAGCOR recognized companies that maintained compliance amid these changes, framing the reforms as a foundation for a more transparent sector. For more on the revenue impact, licensee reaction and payment shifts, see Tengco’s commendation of licensees amid tighter rules.
The friction in payments is also reshaping consumer flows. One leading operator recently partnered with payment providers to enable cash top-ups outside e-wallets, and is working to expand cashout options. Separately, an economist warned that online gaming already accounts for about 5% of household spending, or roughly PHP400 billion, which could crowd out purchases at malls and brick-and-mortar stores. He described the trend as “wallet diversion” that might slow consumption-led growth if pesos move from retail to gaming apps. The analysis underscores why regulators are stress-testing affordability tools and advertising limits to mitigate social costs while preserving formal economic channels. The retail and macro implications are explored in this economist’s warning on household budgets.
What other markets signal
International experience suggests regulated frameworks can capture demand while raising standards. Ontario, which opened its market to third-party operators in 2022, logged its second-best monthly revenue in April at C$313.3 million, with casino games accounting for the dominant share and sports betting the rest. The Canadian province’s trajectory has become a touchstone for policymakers weighing how to balance consumer protection with fiscal benefits. Alberta has moved to establish its own market after passing enabling legislation, signaling growing provincial competition within Canada. Those results do not map perfectly onto the Philippines, where illegal offshore operators and local social concerns create different risks. But they show how clear rules, licensing and tax structures can stabilize a market and attract compliant operators. For more on the Canadian benchmark, see Ontario’s recent revenue performance.
The stakes: growth vs. governance
The Philippines sits at a pivot point. PAGCOR is separating its regulatory and operating roles to become a pure regulator, seeking to reduce conflicts of interest and bolster investor confidence. At the same time, political pressure for a ban, religious objections and concerns about household finances are intensifying. The regulator’s case is that online play cannot be rolled back, so the responsible course is a stronger rulebook, better technology and coordinated enforcement to protect the public. That means tighter ad rules, identity checks, payment restrictions and data-driven interventions, even if the transition pins revenue in the short term. Proponents say the payoff is a market that supports jobs and taxes, protects players and squeezes illegal operators. Critics warn of social costs that could ripple through retail and consumer spending. How policymakers calibrate those trade-offs will determine whether the industry’s digital gains endure or give way to a harder crackdown. Recent remarks and measures detailed in PAGCOR’s statements rejecting a total ban and its plan for stricter online rules frame the choice: regulate for resilience or risk driving play into the shadows.
