PAGCOR is broadening its regulatory oversight of the Philippines’ online gaming sector as the market faces declining revenue, illegal operators, payment changes and emerging AI-related risks.
Through new rules, PAGCOR expects stricter regulations for all B2B players in the gaming industry in addition to the Special Class BPOs. Meanwhile, providers will be required to follow the transition process for the firms that are currently working with certified Gaming System Administrations.
Jessa Mariz R. Fernandez, PAGCOR Assistant Vice President, said:
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.
In light of the declines in the industry, PAGCOR has released new statistics. GGR for Q2 2026 fell by 20.33% compared to the previous year to €1.36 billion (PHP88.13 billion). In Q1, this figure fell by 15.87% to €1.35 billion (PHP87.6 billion).
Illegal gaming is still a significant concern for PAGCOR as unregulated providers do not incur compliance costs like regulated firms.
Furthermore, with the electronic wallets having been dematerialized from gaming applications, the importance of payment regulation is evident. PAGCOR has therefore revised the accreditation process for different gateways and payment channels.
Meanwhile, PAGCOR has also begun studying the potential use of artificial intelligence in curbing fraud. However, it should be noted that it might also enable more sophisticated criminal schemes.
