Philippine Amusement and Gaming Corporation (PAGCOR) chairman and chief executive Alejandro Tengco is pushing ahead with a broad restructuring of the Philippines’ gaming landscape, framing recent regulatory tightening and the planned privatization of the state-run Casino Filipino network as necessary moves to secure the industry’s long-term viability.
His remarks at the recent G2E Asia Philippines conference in Manila underscored a shift toward stronger oversight as digital gambling continues to outpace the growth of traditional casinos and as regional competition intensifies.
The rapid expansion of the e-games market has drawn heightened scrutiny from policymakers and regulators who worry that the sector’s momentum has outpaced its safeguards. That concern led to new restrictions this year, including the removal of online gambling links from major e-wallets and payment channels—an action that immediately slowed transaction flows for licensed operators.
But Tengco framed the recalibration as an investment in the industry’s durability rather than a retreat from innovation. He said the changes aim to “strengthen regulatory frameworks to create a market that is grounded on integrity, innovation, and long-term sustainability.”
The impact of the revised rules has been uneven. PAGCOR data shows the e-games and e-bingo segment remained one of the industry’s strongest performers in 2025, posting 18% growth in the third quarter. Yet that growth was front-loaded, with revenues cooling as operators reconfigured systems to comply with new traceability and anti-money-laundering requirements.
Tengco said the adjustment period was expected and should not be interpreted as a signal of weakness. “Therefore, this short-term dip was never a sign of weakness or failure, but a necessary step towards long-term stability and greater investor confidence.”
The Philippines is banking on its position as one of Asia’s fastest-expanding online gambling hubs, but the broader environment is becoming more competitive. Major regional jurisdictions are upgrading infrastructure, tightening their own regulatory regimes and courting international investors. At the same time, player behavior is shifting, with consumers demanding more sophisticated digital platforms and frictionless payment systems—features that require deeper compliance protocols and more advanced oversight tools.
Tengco acknowledged these pressures but argued that the Philippine market retains strong fundamentals and growth momentum, particularly in digital gaming. He said the online segment will remain a critical growth frontier and that PAGCOR intends to regulate “with clarity, consistency, and foresight.”
Privatizing Casino Filipino, a plan that has resurfaced repeatedly over the last decade but never fully advanced, is a central part of that broader reorganization. Tengco described the move as overdue and said preparations are underway to modernize the state-owned casino network before divestment.
The goal is to transition PAGCOR into a purely regulatory body, eliminating the conflict inherent in acting both as operator and regulator. He said the agency’s properties are now undergoing upgrades to refresh facilities and gaming equipment, aligning them with the expectations of a more competitive private market. “This is a reform that is long overdue and is now being pursued with resolve,” he said.
Tengco’s message reflects a wider strategic pivot: strengthening the country’s regulatory architecture while positioning the Philippines as a stable, credible destination for gaming investment.
As technologies evolve and global standards tighten, he said the future of the sector will depend on regulatory agility, industry cooperation, and a shared commitment to integrity—principles he insists must guide the industry’s next phase of growth.
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