The Philippine Amusement and Gaming Corporation (PAGCOR) is intensifying its regulatory oversight of the online gaming industry amid a backdrop of declining revenues, the presence of illegal operators, changes in payment processing, and the risks associated with artificial intelligence (AI).
With the introduction of new regulations, PAGCOR aims to impose stricter rules on all B2B entities within the gaming sector, extending oversight to those classified as Special Class BPOs. Furthermore, gaming providers are required to adhere to a transition process with certified Gaming System Administrations.
Jessa Mariz R. Fernandez, PAGCOR’s Assistant Vice President, emphasized that accountability must permeate every level of the gaming ecosystem, stating, "A successful gaming market is not defined simply by how fast it grows. It is defined by how well it is governed."
The agency has reported concerning trends, revealing that gross gaming revenue (GGR) for the second quarter of 2026 fell by 20.33% year-on-year, amounting to €1.36 billion (approximately PHP 88.13 billion). In the first quarter, GGR had already decreased by 15.87% to €1.35 billion (about PHP 87.6 billion).
Illegal gaming remains a critical issue, as unregulated operators do not face the same compliance costs as their licensed counterparts. Additionally, with the removal of electronic wallets from gaming applications, the necessity for stringent payment regulation is highlighted. In response, PAGCOR has updated the accreditation procedures for various payment gateways and channels.
Moreover, PAGCOR is exploring the possible applications of AI technology in combating fraud; however, the agency also acknowledges the potential for these technologies to facilitate more advanced criminal activities.
