The Philippine Amusement and Gaming Corporation (PAGCOR) has reaffirmed its commitment to enhancing security and transparency within the country’s online gaming sector. This announcement comes as the industry experiences a decline in gross gaming revenue (GGR) for the third quarter. PAGCOR Chairman and CEO Alejandro H. Tengco emphasized that while transitioning to a new regulatory framework poses challenges for operators, it is a crucial step towards fostering a more accountable and trustworthy gaming environment.
In a speech to the Association of Independent Licensed Gaming and Amusement Operators at an event in Muntinlupa City, Tengco acknowledged the difficulties faced by licensed gaming firms. The third-quarter GGR experienced a slight decrease compared to the previous year, primarily due to a mandatory delinking of electronic wallets from online gambling sites initiated in August. This initiative, led by Bangko Sentral ng Pilipinas, resulted in a noticeable drop in revenue during August and September as players had fewer payment options available.
Despite these challenges, the electronic games segment demonstrated resilience, achieving a 17.4 percent year-on-year growth in the third quarter. Tengco noted that early-quarter momentum showcased the sector’s viability even amidst regulatory challenges.
Tengco framed these reforms as foundational for the industry’s long-term health and player protection rather than mere obstacles. He highlighted the importance of the delinking initiative in enhancing operational transparency and maintaining high standards across licensed operators. This move aims to protect vulnerable players and rebuild public confidence in the legitimacy of regulated gaming activities.
The Association of Independent Licensed Gaming and Amusement Operators (AILGAO), through its President Rafael Tabora, expressed support for the regulatory direction. The organization also awarded Tengco the “Gaming Exemplary Leadership Award,” signaling the industry’s acceptance of the new compliance framework and a commitment to improved operational practices.
However, Tengco warned of the ongoing threat posed by unlicensed operators who exploit the regulatory environment to attract players seeking unrestricted access. These illegal platforms expose users to financial fraud and data theft while undermining the reputation of compliant operators. The illegal sector’s lack of accountability and responsible gaming practices presents a significant risk to player welfare and the industry’s integrity.
DigiPlus Interactive, the largest online gaming platform in the Philippines, reported a 59 percent decrease in third-quarter net income, amounting to Php1.71 billion ($29.1 million). This decline underscores the immediate operational impact on major players due to the transition.
Despite acknowledging the pressures on licensees, Tengco encouraged operators to view these reforms as protective measures rather than burdens. PAGCOR believes that players are gradually adapting to the new e-wallet protocols, while law enforcement intensifies efforts to crack down on illegal platforms.
Tengco stressed an essential lesson for the regulator: sacrificing short-term revenues is necessary to ensure the industry’s long-term credibility and sustainability. By continuing this regulatory path, the Philippine gaming sector positions itself as a model of responsible operations and player protection, setting a regional standard and demonstrating that effective regulation and industry viability can coexist.
The ongoing regulatory transition reflects PAGCOR’s dedication to balancing industry growth with robust consumer protection. The organization’s efforts aim to establish a secure and transparent gaming environment, ultimately benefiting both operators and players. As the sector navigates these changes, PAGCOR remains committed to maintaining the integrity of the Philippine gaming industry while fostering a climate of responsibility and trust.
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