The Philippine Amusement and Gaming Corporation (PAGCOR) is expanding its regulatory framework for the nation’s online gaming sector amid challenges including revenue declines, illegal operations, payment system transitions, and emerging risks related to artificial intelligence.
With fresh regulations on the horizon, PAGCOR aims to impose stricter requirements on all business-to-business (B2B) entities within the gaming industry, extending these rules beyond the Special Class Business Process Outsourcing (BPO) companies. Additionally, gaming providers will need to adhere to a transition protocol involving firms currently collaborating with certified Gaming System Administrators.
Jessa Mariz R. Fernandez, an Assistant Vice President at PAGCOR, emphasized the importance of governance in fostering a healthy gaming market, stating, "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."
Reflecting the struggles within the industry, PAGCOR released new figures revealing that gross gaming revenue (GGR) for the second quarter of 2026 dropped by 20.33% year-over-year, amounting to €1.36 billion (PHP88.13 billion). The first quarter also saw a decline, with GGR falling by 15.87% to €1.35 billion (PHP87.6 billion).
Illegal gaming remains a considerable issue for PAGCOR, as unregulated operators avoid the compliance costs that legitimate providers must cover. In response to the shift in payment methodologies, highlighted by the detachment of electronic wallets from gaming applications, PAGCOR is adjusting its accreditation processes for various payment channels and gateways.
Additionally, PAGCOR is exploring the application of artificial intelligence as a tool to combat fraud. However, it cautions that AI could also facilitate more complex criminal activities, underscoring the dual-edged nature of technological advancements in the sector.
