The Philippine Amusement and Gaming Corp (PAGCOR) has reported a decline in third-quarter gaming revenues attributed to the implementation of robust consumer protection measures. This announcement was made by Alejandro Tengo at the G2E Asia event in the Philippines, highlighting the effects of increased financial safeguards introduced for legitimate online gaming operators.
In a keynote address on Wednesday, Tengo elaborated on the recent regulatory changes that have impacted the gaming landscape, stating that the delinking of e-wallets for iGaming transactions was a significant step implemented in August. Furthermore, PAGCOR’s decision to prohibit the use of credit cards and cryptocurrencies aims to prevent excessive borrowing and impulsive behaviors among players.
“These reforms inevitably have short-term impacts,” Tengo acknowledged, recognizing that such measures could be perceived as setbacks in immediate terms. However, he emphasized that these stricter regulations reflect an industry committed to sustainable long-term growth. He asserted that the foundation of a modern digital gaming ecosystem must be built on global integrity and compliance standards, underscoring the unwavering commitment to responsible gaming and player protection.
Consumer safety has become a central policy focus for PAGCOR over the past year. In July, the regulator collaborated with the Ad Standards Council to ensure that gambling-related advertisements are screened before being broadcasted. This measure aims to curb misleading content and protect vulnerable groups from potential harm.
PAGCOR has mandated licensed operators to integrate responsible gambling tools, including self-exclusion options and betting limits. Partnerships with organizations like the Seagulls Flock Organization have been established to provide a 24/7 problem gambling helpline and to accredit rehabilitation centers. These initiatives signify PAGCOR’s long-term objective of fostering a more secure, transparent, and internationally aligned gaming environment. Tengo asserted that the future of gaming hinges on regulatory agility, industry cooperation, and a collective commitment to integrity, ensuring that player safety and wellbeing remain the core of their policies.
The Philippines iGaming sector stands as an industry leader, having generated PHP154.51 billion in gross gaming revenue (GGR) last year, a remarkable increase of 165% compared to the previous year. In the first half of 2025, the iGaming industry contributed PHP114.83 billion, surpassing land-based revenue and boosting PAGCOR’s total revenues to PHP59 billion.
According to a 2025 Statista report, Filipino players have demonstrated a strong preference for online gambling due to its convenience and accessibility. The ability to participate in various games and place bets from the comfort of their homes eliminates the need for travel to physical casinos, further fueling the online gaming sector’s growth.
Despite a slight dip of 0.11% in GGR during the third quarter, strong performance in the e-games sector in June and July resulted in a 17.4% increase for the period, amounting to PHP41.95 billion, or 44.4% of the total GGR. This resilience underscores the sector’s ability to adapt and thrive despite regulatory changes.
Conversely, some industry observers argue that the immediate financial impacts of heightened compliance measures could pose challenges for smaller operators struggling to meet the new standards. Additionally, concerns have been raised regarding the potential stifling of innovation due to increased regulatory oversight. Critics suggest that while consumer protection is essential, there must be a balance to allow for industry growth and creativity.
Nonetheless, PAGCOR remains steadfast in its commitment to ensuring a secure and responsible gaming industry. As Tengo reiterated, the evolving gaming landscape will continue to demand proactive measures to align with global standards, ensuring that the Philippines remains a formidable player in the international iGaming market. The focus remains on cultivating an environment where both players and operators can confidently engage, knowing that safety and integrity are prioritized.
In conclusion, while the short-term impacts of enhanced compliance measures are evident, the long-term vision for the Philippines’ iGaming industry is clear. By prioritizing consumer protection and aligning with global standards, PAGCOR aims to ensure sustainable growth and maintain its position as an industry leader. As the gaming sector continues to evolve, the emphasis on collaboration, innovation, and integrity will be crucial in navigating the challenges and opportunities that lie ahead.
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