PAGCOR tightens responsible gaming rules as online play accelerates
Philippine gambling regulator PAGCOR has introduced stricter responsible gaming controls in response to the rise in digital gambling activity.
Speaking at G2E Asia in the Philippines on Wednesday, PAGCOR Chairman and Chief Executive Alejandro Tengco said the new financial safeguards include having already delinked e-wallets and some payment channels to improve traceability and curb illicit transactions.
Tengco noted that operators and players had to adjust to the stricter rules, resulting in softer revenues in the third quarter. However, he said the changes were necessary to align with global compliance standards.
The broader framework also requires licensed operators to deploy tools such as self-exclusion and betting limits. Credit cards and cryptocurrencies are now prohibited for wagering, and Tengco stated that the policy recognizes the risks of excessive borrowing and impulsive gambling.
PAGCOR has also expanded its support network, collaborating with the Seagulls Flock Organization to operate a round-the-clock helpline, train responsible gaming ambassadors, and facilitate the accreditation of treatment facilities.
Advertising rules were tightened after PAGCOR partnered with the Ad Standards Council in July, removing gambling promotions from public spaces and requiring all marketing to meet stricter accuracy and responsibility criteria.
“These efforts reflect PAGCOR’s long-term goal of cultivating a more secure, transparent, and internationally aligned gaming environment,” Tengco said, adding that the future of gaming would require regulatory agility and industry cooperation.
Abi Bray brings strong researching skills to the forefront of all of her writing, whether it’s the newest slots, industry trends or the ever changing legislation across the U.S, Asia and Australia, she maintains a keen eye for detail and a passion for reporting.
Verticals:
Sectors:
Topics:
Dig Deeper
Related stories
The Backstory
How we got here
Philippine regulators have been tightening the screws on online gambling for more than a year, trying to square fast-rising digital play with consumer safeguards and law enforcement. That push accelerated as e-gaming became the growth engine of the industry, drew scrutiny from lawmakers and tax officials, and exposed gaps in payments and policing. The result is a tougher rulebook for operators and new tools to keep illicit platforms at bay, even at the cost of short-term revenue volatility.
E-gaming’s rise reset the policy debate
The shift online put pressure on oversight. By early 2025, e-games and e-bingo delivered the majority of sector earnings, with online play generating 56% of gaming revenues in the first quarter, according to the regulator’s latest tallies. PAGCOR detailed the mix in a quarterly update showing total revenue of Php28.07 billion, with e-gaming contributing Php14.32 billion and licensed casinos making up a smaller share of the pie. The agency paired that showing with lower operating costs and higher net income, reinforcing a message that disciplined governance can coexist with expansion. See the regulator’s first-quarter scorecard in e-gaming responsible for over half of the Philippines’ first-quarter gaming revenues.
The sustained surge through midyear added fiscal and political stakes. In a briefing to the House Committee on Games and Amusements, the regulator said regulated igaming generated PHP69 billion in the first half, with PHP27.5 billion flowing to “nation-building” programs, including PHP14.7 billion tied to universal health care. That testimony doubled as a warning: illegal sites siphon revenue and target all ages without adequate guardrails. The case for tighter oversight and stronger enforcement is laid out in regulated igaming significant revenue driver in Philippines, PAGCOR says.
Regulators pressed for rules, not prohibition
As a lawmaker floated a full online gambling ban, the regulator countered that stricter, enforceable rules would deliver better outcomes than outright prohibition. PAGCOR Chairman Alejandro Tengco argued that a clear regime can protect users, differentiate licensed local operators from offshore sites that evade taxes, and keep revenue inside the formal economy. The regulator also previewed technology-led supervision, from AI tools that flag risky behavior to automated suspensions and age checks, as well as a July pact to curb aggressive advertising. The stance is detailed in PAGCOR calls for stricter online gambling rules.
Fiscal policy has been part of the conversation. The Department of Finance floated a dedicated online gambling tax to capture the sector’s growth. That move, together with ad and content controls, signaled that Manila aims to channel the digital shift rather than suppress it, while making the system harder for bad actors to exploit.
Chokepoints: payments and policing
The most immediate enforcement lever has been payments. The Bangko Sentral ng Pilipinas ordered e-wallet providers to remove gambling payment links, choking off a common on-ramp to offshore sites and unlicensed apps. The step hit revenues in the short term. PAGCOR later said it suffered a 40% to 50% income drop after the delinking, spotlighting how deeply embedded those channels had become. The regulator paired the squeeze with on-the-ground enforcement support, committing PHP50 million to the National Bureau of Investigation to pursue illegal operations and cover detention costs for offshore suspects. Details of the cooperation appear in PAGCOR adds PHP50 million to illegal gambling crackdown.
Despite the shock to payment flows in August, the regulator reported improved performance later in the year as compliance measures settled and legal channels adapted. From January to September, revenue rose 5.8% and net income jumped 49% to PHP14.32 billion, even as contributions to government programs increased. That rebound underscores a central theme of the overhaul: enforcement and responsible play tools may dent near-term turnover but can underpin more stable growth. The turnaround is documented in PAGCOR revenue up 5.8% and net income surges 49%.
A tougher operating manual takes shape
The regulator’s tightening campaign has touched almost every point in the customer journey. Age gates are being strengthened to ensure users are over 21. AI-driven monitoring is slated to flag excessive deposits and losses, with accounts subject to automatic suspensions. Self-exclusion and betting limits are standardizing across licensed platforms, while advertising is being scrubbed from public spaces and subjected to stricter accuracy rules. These steps have been phased in alongside collaborations with the Ad Standards Council and social support networks.
The advertising crackdown began midyear with a planned pact to police billboards and prime-time TV, part of a broader response to complaints about aggressive digital promotions and pre-installed gaming apps aimed at minors. That initiative sits within the framework outlined in the regulator’s call for stricter online gambling rules, and echoes the midyear testimony on guarding against illegal platforms in PAGCOR’s briefing to Congress.
On the revenue side, the state has banked on the regulated market’s resilience. The first-quarter update showed total contributions back to the government up 21.5% year over year, aided by expense controls and the growing share of e-gaming. That fiscal context, including the regulator’s own net income gain, is captured in the e-gaming revenue breakdown for the first quarter and the later nine-month results.
What’s next for operators and players
The policy trajectory points to a more fortified, technologically policed market where payments are traceable, advertising is constrained, and at-risk behavior triggers intervention. Operators face higher compliance costs and reduced flexibility on funding sources, but a clearer distinction from illegal sites may make licensed platforms more defensible and bankable. Players will encounter tighter identity checks, hard limits, and fewer frictionless payment options, especially with e-wallet links trimmed.
At the same time, the government’s fiscal goals remain tethered to the sector’s health. Regulators have repeatedly framed igaming as a top revenue driver whose proceeds fund classrooms, health programs and disaster response. That argument has underpinned resistance to a blanket ban while justifying stricter surveillance and stronger penalties. The balance of those aims—consumer protection, lawful growth and reliable tax receipts—will define how the next phase of rules lands.
The arc of the past year shows the playbook: limit exposure to unregulated channels, fund enforcement, and lean on data to keep licensed platforms in bounds. The payment clampdown tested the system’s resilience; the rebound in later results suggested the market can reset. Whether AI-driven monitoring and new ad rules can meaningfully deter harm while preserving a legal, taxable online economy will be the next measure of success. For a sense of how regulators judge that trade-off, revisit the midyear briefing in regulated igaming significant revenue driver in Philippines and the regulator’s push for rules over prohibition in calls for stricter online gambling regulation.
