The chairman and chief executive of the Philippine Amusement and Gaming Corp (Pagcor), Alejandro Tengco, says inquiries regarding online gaming licensing in the Philippines “all of a sudden went up” following the country’s exit from the Financial Action Task Force’s (FATF) ‘grey list’ for money laundering.
The Philippines was removed last month from the France-based watchdog’s grey list, also known as a list of ‘jurisdictions under increased monitoring’. The Philippines had been on the list for three years.
Mr Tengco (pictured) said on Tuesday that the banning last year of offshore online gaming providers – formerly known as Philippine Offshore Gaming Operators (POGOs) – “played a crucial role” in the Philippines being removed from FATF’s grey list. That was because the country showed that it was “firm and committed” in the effort “to fight money laundering and ensure the integrity” of its financial system.
“In fact, right after the decision for the Philippines to be stricken out of the grey list, inquiries with regard to online gaming licensing all of a sudden went up,” stated the Pagcor chairman.
He added: “We were getting calls day in, day out, inquiring whether they could apply for a licence or asking that we give them the copies of Pagcor’s guidelines.”
Mr Tengco was speaking in Manila during a casino-industry trade event, the ASEAN Gaming Summit.
The official said the ban on offshore gaming operators “was both a challenge and an opportunity” for Pagcor, as the regulator “steered the orderly cessation of POGO operations while mitigating potential economic impacts”.
“We also championed for the retention of special class BPOs [business process outsourcing companies], which allow them to continue operations since they are not engaged in gaming operations, but only provide backend support functions,” he added.
Mr Tengco also said the number of applicants for special class BPOs licences “surged overnight” after the Philippines was removed from the FATF’s grey list.
“Clearly, when we were stricken out of the grey list, the level of interest in the gaming industry in the Philippines really went up,” he stated.
The regulator said the Philippine gaming industry “continued its outstanding performance” last year. Citing preliminary data, Mr Tengco said the Philippine gaming sector – including non-casino operations – produced gross gaming revenue (GGR) of circa PHP410 billion (US$7.16 billion currently) in 2024, nearly a “25-percent increase” from 2023.
“While the brick-and-mortar casinos contributed nearly half of the total GGR, it was the eGames and eBingo sector that saw an outstanding growth,” he noted.
“Pagcor recognises that the future of Philippine gaming will become more technology driven,” Mr Tengco added. “This is why Pagcor welcomes the huge potentials of electronic gaming while ensuring strict oversight to effectively contain the operations of those who are not registered.”
In January, Pagcor implemented a fresh reduction to the remittance rates for online and on-site betting platforms. The gaming regulator said the fee had been lowered to 30 percent, from 35 percent previously.
Given the growth of the eGames sector, the head of Pagcor said the agency was “in the process of strengthening” its responsible gaming programmes.
He added: “Soon, we will also require all of our licensees to set aside a certain percentage of their GGR to be used for projects that will contribute to nation building.
“We believe that these developments should foster positive changes in the Philippine gaming industry.”
