PAGCOR Reinforces Online Gaming Reforms Amid Q3 Dip

The Philippine Amusement and Gaming Corporation (PAGCOR) has reinforced its drive for a more secure, transparent online gaming landscape amid a slight drop in third-quarter gross gaming revenue (GGR). Chairman and CEO Alejandro H. Tengco acknowledged the operational strain on licensees but said the shift to a tighter regulatory system is necessary to strengthen trust in the country’s digital gaming sector.

Transition Pressures Weigh on Operators

Addressing members of the Association of Independent Licensed Gaming and Amusement Operators (AILGAO) in Muntinlupa City, Tengco noted that licensed platforms faced a difficult quarter. The industry’s mild year-on-year contraction was largely tied to the August directive requiring all online gambling sites to disconnect electronic wallets a move led by the Bangko Sentral ng Pilipinas. The reduction in available payment options caused immediate declines in August and September activity.

Despite these headwinds, electronic games posted a 17.4% year-on-year increase, which Tengco said reflected strong underlying demand before the policy shift took effect.

Reforms Positioned as Foundation for Long-Term Credibility

Tengco stressed that the ongoing regulatory overhaul is designed to elevate industry standards rather than hinder growth. He said mandatory e-wallet delinking is a core component of enhancing transparency, setting clearer expectations for licensees and reinforcing protections for vulnerable players. The goal, he added, is to restore public confidence in regulated online gaming.

AILGAO President Rafael Tabora publicly backed this direction and presented Tengco with a “Gaming Exemplary Leadership Award,” which Tengco described as a sign of the sector’s willingness to adopt stronger compliance practices.

Unlicensed Platforms Continue to Undermine the Market

Tengco warned that illegal online gambling sites have intensified their efforts to attract customers during the transition period. These operators, he said, expose players to data theft, fraud and unrestricted gambling, while damaging the reputations of firms meeting regulatory responsibilities.

The financial impact of the shift is already visible DigiPlus Interactive, the country’s largest online gaming operator, reported a 59% decline in Q3 net income to Php1.71 billion (US$29.1 million) as the new rules took effect.

PAGCOR Urges Operators to Stay the Course

Although Tengco acknowledged the immediate business pressures, he advised licensees to view the reforms as long-term safeguards. PAGCOR expects players to gradually adapt to the new payment protocols, while authorities ramp up their pursuit of illegal operators.

Regulatory Integrity Over Short-Term Gains

Tengco reiterated that short-term revenue losses are a necessary trade-off for building a more credible, sustainable industry. He said PAGCOR remains committed to positioning the Philippine market as a leader in responsible, accountable online gaming demonstrating that strong regulation and commercial viability can coexist.