The Philippine Amusement and Gaming Corporation (PAGCOR) is enhancing its regulatory framework for the country's online gaming sector amid challenges like falling revenues, the rise of illegal operators, payment method changes, and potential risks associated with artificial intelligence.
New regulations will impose stricter controls on all business-to-business (B2B) operators in the gaming industry, which includes Special Class Business Process Outsourcing (BPOs). Moreover, service providers must adhere to a transition process for firms that are currently engaged with certified Gaming System Administrators.
Jessa Mariz R. Fernandez, PAGCOR’s Assistant Vice President, emphasized the importance of governance, 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."
Recent statistics from PAGCOR reflect industry challenges, showing a 20.33% decline in gross gaming revenue (GGR) for the second quarter of 2026, dropping to €1.36 billion (PHP88.13 billion) from a year earlier. In the first quarter, GGR fell by 15.87%, totaling €1.35 billion (PHP87.6 billion).
Illegal gaming remains a critical problem for PAGCOR, as unregulated operators do not face the compliance costs incurred by their regulated counterparts. Additionally, with the removal of electronic wallets from gaming applications, PAGCOR recognizes the necessity of regulating payment systems. Consequently, they have revised the accreditation procedures for various gateways and payment options.
PAGCOR is also exploring how artificial intelligence could aid in fraud prevention, acknowledging, however, that it may also facilitate more advanced criminal schemes.
