After being removed off the Financial Action Task Force’s (FATF) grey list, the Philippines has seen a sharp rise in inquiries about online gambling licenses. Alejandro Tengco, the chairman and CEO of the Philippine Amusement and Gaming Corp (Pagcor), highlighted the rise in interest in his remarks at the ASEAN Gaming Summit in Manila.
Tengco stated, “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.” He noted that the regulator was receiving frequent calls, with companies seeking application guidelines and licensing details.
POGO Ban and Industry Impact
Tengco attributed the country’s exit from the grey list in part to the decision to ban Philippine Offshore Gaming Operators (POGOs). He emphasized that this move demonstrated the country’s commitment to combating money laundering and maintaining financial transparency.
“The banning of offshore online gaming providers played a crucial role in the Philippines being removed from FATF’s grey list,” Tengco said. “It showed our firm resolve to ensure the integrity of our financial system.”
While the ban posed challenges, it also created opportunities. Pagcor supported the continuation of special class business process outsourcing (BPO) companies that provide backend services but are not directly involved in gaming operations. Tengco reported a noticeable rise in applications from these firms following the FATF announcement.
In 2024, the Philippine gaming industry grew remarkably. According to Tengco, preliminary data showed that gross gaming revenue (GGR) was over PHP410 billion ($7.16 billion), which was almost 25% higher than the previous year. Although traditional casinos made a substantial contribution, the eGames and eBingo industries saw tremendous expansion.
Tengco emphasized Pagcor’s dedication to monitoring and responsible gaming activities, acknowledging the trend towards technology-driven gaming. He revealed plans to strengthen responsible gaming initiatives and mandate that licensees set aside a portion of their gross gaming revenue (GGR) for national development initiatives.
“We believe that these developments should foster positive changes in the Philippine gaming industry,” Tengco stated.
Additionally, in January, Pagcor reduced the remittance rates for online and on-site betting platforms from 35% to 30%, supporting further growth in the sector. With regulatory reforms and increased transparency, the Philippines’ gaming industry appears poised for continued expansion.
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