PAGCOR Tightens Philippines Online Gaming Rules

The Philippine Amusement and Gaming Corporation (PAGCOR) is expanding its regulatory oversight of the country’s online gaming sector as the market deals with falling revenue, illegal operators, payment system changes and emerging risks linked to artificial intelligence.

Under the new rules, PAGCOR plans to impose tighter requirements on B2B participants across the gaming industry, alongside the existing Special Class BPOs. Providers will also have to comply with a transition process for companies currently operating with certified Gaming System Administrations.

Jessa Mariz R. Fernandez, PAGCOR Assistant Vice President, said:

“Responsibility has to follow the entire ecosystem. A successful gaming market is not defined simply by how fast it grows. It is defined by how well it is governed.”

The regulator has published new figures amid the market’s recent decline. Gross gaming revenue (GGR) dropped by 20.33% year-on-year in Q2 2026 to €1.36 billion (PHP88.13 billion). During Q1, GGR decreased by 15.87% to €1.35 billion (PHP87.6 billion).

PAGCOR continues to identify illegal gaming as a major issue, noting that unregulated providers do not face the same compliance costs as licensed operators.

Payment regulation has also become increasingly important following the removal of electronic wallets from gaming applications. In response, PAGCOR has updated its accreditation procedures covering various payment gateways and channels.

At the same time, the regulator is examining how artificial intelligence could potentially be used to combat fraud. However, the technology could also contribute to the development of increasingly sophisticated criminal schemes.