Pagcor Chief Highlights Transition Period for Online Gaming in The Philippines

Philippine online gaming operators continue adjusting to a wave of new rules, and the latest update from the Philippine Amusement and Gaming Corp shows how wide the impact has been. Stricter safeguards, tighter controls on payments, and a renewed push for cleaner operations have reshaped the sector during 2025. Alejandro Tengco spoke to licensed operators this week and said the changes are tough in the short term but essential for long-term credibility.

Good to Know

• Pagcor is enforcing stricter rules on electronic games and e-bingo to promote safer activity across the market.
• Mandatory separation of e-wallets from gaming platforms triggered short-term dips in revenue.
• Illegal online operators remain one of the biggest threats to both player safety and the reputation of licensed companies.

Alejandro Tengco addressed members of the Association of Independent Licensed Gaming and Amusement Operators and acknowledged how much the regulated online ecosystem has shifted. He pointed out that gross gaming revenue in the third quarter of 2025 landed slightly below the previous year. He said:

“You may be interested to know that in the third quarter of 2025, we recorded an industry GGR that was a bit lower than last year.”

Tengco pointed directly to the reforms that triggered adjustments across the sector. He said:

“But this reflects an industry transitioning to stronger and safer practices.”

The biggest piece of that shift involves the mandatory delinking of e-wallets from online gaming platforms, a policy designed to protect younger users, reduce financial risks, and give more credibility to licensed businesses.

Online gaming still recorded 17.4 percent annual growth during the quarter, but Pagcor confirmed that August and September revenue dropped after the e-wallet separation took effect. Tengco addressed operators directly and acknowledged the strain:

“We know that many of you were affected by this sudden development.”

At the same time, he urged licensees to view the changes as part of a broader safety framework. He said:

“However, we must not look at these reforms as obstacles but as safeguards designed to protect your players, your businesses, and the entire ecosystem you operate in.”

He also warned that illegal operators remain active, expanding faster and creating risks that affect far more than financial performance. Tengco said illegal websites expose users to data breaches and fraud, and he stressed that such activity damages the reputation of compliant operators.

Tengco also expressed appreciation for licensed firms that adapted quickly to the new rules. He said:

“We recognise all of you for being the backbone of the legitimate online gaming sector: innovating and adapting quickly, and staying compliant even when the rules become stricter.”

The pressure for more regulation has also grown in Congress. Senators debated online gambling controls in August, including proposals that could impose much harsher limits or outright bans. By late October, Pagcor confirmed a sharp drop in its own income, tied partly to the delinking of e-wallets and a slight slowdown in new player sign-ups.

FAQ

Why did Pagcor introduce the e-wallet delinking rule?

To reduce financial risks for vulnerable players and strengthen credibility among licensed operators.

Did the rule hurt revenue?

Yes. August and September saw temporary declines in GGR, though the wider online segment still posted annual growth.

Are illegal operators still active?

Yes. Pagcor says illegal platforms continue expanding and pose high risks involving fraud and data theft.

What concerns are lawmakers raising?

Senators are reviewing bills that could impose much tighter online gambling restrictions, including possible bans.

How did licensed operators respond to the reforms?

Pagcor said licensees adapted quickly and showed steady compliance.

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