The Philippine gaming industry “has confronted severe headwinds” in recent months, but there are “tremendous opportunities to strengthen regulatory frameworks and to create a market that is grounded in integrity, innovation, and long-term sustainability”.
So said Alejandro Tengco (pictured), chairman and chief executive of the Philippine Amusement and Gaming Corp (Pagcor), in a keynote speech at Global Gaming Expo (G2E) Asia @ the Philippines, in Manila, on Wednesday.
“This includes the ongoing transition towards stronger financial safeguards for legitimate online gaming operators,” Mr Tengco stated.
“This reform, which is designed to improve traceability, reinforce anti-money laundering protections, and curb illicit financial activity, inevitably has short term impacts,” he added.
In August, members of the Philippine Senate began discussing stricter regulation of the country’s online gambling sector, including bills proposing a ban.
In late October, Pagcor said it had witnessed a “sharp decline” in its income since August, which the regulator attributed to the delinking of online gambling platforms from electronic wallets (e-wallets) and a slight decline in the number of new players.
In his Wednesday remarks, the Pagcor chief said the industry’s revenue had “softened” as operators “recalibrated their systems and players adjusted to the new requirements”.
“We understand that this can be a cause for concern because when an industry is expanding, any measure that disrupts momentum, even if temporarily, can feel like a setback,” Mr Tengco stressed.
The Pagcor head noted that strengthening the foundations of a business segment “sometimes requires deliberative recalibration”.
“We cannot build the modern digital gaming ecosystem on foundations that do not follow and meet global integrity and compliance standards,” he added. “The short-term dip was never a sign of weakness or failure, but a necessary step towards long-term stability and greater investor confidence.”
According to Mr Tengco, the Philippine gaming market “remains anchored on strong fundamentals and accelerating momentum, especially in the online gaming segment”.
The Pagcor chief noted that the online gaming segment still grew 17.4 percent year-on-year in the third quarter of 2025, but admitted that the e-wallet delinking policy triggered a temporary GGR decline in August and September.
“We believe that the local online gaming industry will remain a critical frontier for growth, and the challenges we face today will only push us to innovate boldly and to regulate with clarity, consistency, and foresight,” he stated.
Mr Tengco also mentioned the plan to end the agency’s dual-role as a regulator and operator. “This is a reform that is long overdue and is now being pursued with resolve,” he said.
He added: “The future of gaming will demand regulatory agility, industry cooperation, and a shared commitment to integrity. This is precisely the direction that Pagcor is taking today.”
