PAGCOR Chairman and CEO Alejandro Tengco has described the recent restrictions imposed on the rapidly growing eGames sector – as well as the regulator’s own moves to privatize its casino operations – as essential steps to ensuring the long-term health of the Philippines gaming industry.
In comments made during an opening address at G2E Asia Philippines in Manila on Wednesday, Tengco said recent challenges that have slowed the eGames sector, including the delinking of e-wallets and certain payment channels, present an opportunity to “strengthen regulatory frameworks to create a market that is grounded on integrity, innovation and long-term sustainability”.
On the delinking of e-wallets, the chairman stated, “This reform, which is designed to improve traceability, reinforce anti-money laundering protections, and curb illicit financial activity, inevitably has short-term impacts.
“The e-games and e-bingo segment, which remains to be the most dynamic performer in the industry, still posted an 18% growth in the third quarter of 2025. Much of that increase, however, came in the earlier part of the quarter. Our revenues softened as operators recalibrated their systems and players adjusted to the new requirements.
“We understand that this can be a cause for concern because when an industry is expanding, any measure that disrupts momentum, even temporarily, can feel like a setback. But strengthening a segment sometimes requires deliberate recalibration. We cannot build a modern digital gaming ecosystem on foundations that do not follow and meet global integrity and compliance standards.
“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.”
Tengco noted that shifting customer preferences, intense competition across Asia’s major destinations and the growing expectations of an increasingly sophisticated player base presented further need for introspection.
However, he reiterated his belief that the Philippines remains anchored on strong fundamentals and accelerating momentum, especially in the online gaming segment.
“We believe that the local online gaming industry will remain to be a critical frontier for growth and that the challenges we face today will only push us to elevate boldly and to regulate with clarity, consistency, and foresight,” he said. “As a regulator, PAGCOR’s commitment is to make regulation both firm and fair, robust yet responsive and always aligned with international best practices.”
On the need to privatize PAGCOR’s Casino Filipino operations, Tengco added, “This is a reform that is long overdue and is now being pursued with resolve. Our casino Filipino properties are undergoing massive upgrades by modernizing its facilities, refreshing gaming equipment and preparing for a more competitive era of privatized operations.
“But as PAGCOR redefines its role, the market itself has been evolving rapidly. Technologies are changing, player preferences are shifting and global standards are becoming more stringent nowadays.
“The future of gaming will demand regulatory agility, industry cooperation and a shared commitment to integrity. This is precisely the direction that PAGCOR is taking today: a Philippine gaming industry shaped by robust regulation, reinforced safeguards and a clearly delineated institutional structure designed for long-term success.”
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