Alejandro Tengco Warns of Oil Pressure on Gaming Sector

Higher energy costs are adding pressure across the gaming sector. Pagcor chief Alejandro Tengco said markets in Asia and the US are already feeling it, while the Philippines is also dealing with rising fuel costs at home.

Good to Know

• Pagcor said the oil crisis is hitting gaming markets around the world.
• Alejandro Tengco named Singapore, Macau, and the US among affected markets.
• Pagcor is still waiting on a ruling over a plan to split its regulatory and operating roles.

Tengco Says Oil Crisis Is Hitting Global Gaming

Alejandro Tengco said gaming markets around the world are under pressure from the oil crisis linked to the Middle East conflict. Speaking at an industry event in Manila hosted by Inside Asian Gaming, the Pagcor chairman and chief executive said places such as Singapore, Macau, and the United States are all feeling the impact.

The Gulf region supplies about a fifth of global oil and gas. Since February 28, when the United States and Israel launched military action against Iran, maritime trade and energy flows have been disrupted. For the Philippines, that matters a lot. The country relies heavily on fossil fuel imports from the Middle East, and government offices have already brought in energy saving steps.

Fuel prices have jumped sharply. Diesel and gasoline prices in the Philippines have more than doubled since the conflict began. Earlier in the week, the national government said it would suspend several fuel taxes to ease pressure on consumers. Analysts have also recently flagged added strain for Macau gaming as energy costs climb.

Pagcor quoted Tengco in a Wednesday release after the event, saying:

“This is not a good time for everyone.”

He also pushed for closer industry contact as conditions keep changing. “It is important that we come together, that we continue these conversations, and that we support each other as an industry,” Mr Tengco was quoted as saying.

Pagcor, he added, will respond as needed while keeping player protection central. He said: “At Pagcor, we will adjust what we need to do. We have to be in tune with the times and ensure that responsible gaming remains at the centre of what we do.”

The event also brought back a long running issue around Pagcor structure. Tengco repeated that the Governance Commission for Government Owned and Controlled Corporations, or GCG, is still reviewing the proposal to split Pagcor regulatory and commercial functions. Under that plan, Pagcor would keep regulation but exit operations through the sale of the state owned Casino Filipino chain.

Tengco said: “Many are asking for the decoupling, and we are awaiting the decision of the GCG,” he said. “If we get the approval to privatise, it will be a game changer.”

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