In an exclusive interview with iGB, Alejandro Tengco, chairman of the Philippine gaming regulatory body Pagcor, revealed that he aims to achieve three major goals before his term ends on June 30, 2028: decoupling Pagcor's gaming operations from its regulatory functions, promoting comprehensive online gaming legislation, and moving into Pagcor's own headquarters building. During his tenure, the total gaming revenue in the Philippines soared from 214 billion pesos in 2022 to 396 billion pesos (about 6.4 billion US dollars) last year, with a compound annual growth rate of 23%—thanks to the launch of Asia's first legal domestic online gaming market and the support of multi-billion dollar integrated resorts. However, PASA's official website noted that the good days are changing: GGR in the first quarter of 2026 fell 16% year-on-year to 87.6 billion pesos.
The POGO ban combined with the US-Iran conflict led to a sharp drop in online revenue by 23%
Tengco used a vivid metaphor—"My three and a half years were like riding the fastest roller coaster at Disney, very thrilling. Then I woke up to the US-Iran war starting." Online gaming was hit first, with Q1 revenue plummeting 23% to 36.3 billion pesos. Tengco explained that the core customer group for online gaming includes class C and D+—bus drivers, freight and delivery personnel, whose disposable income was directly squeezed by rising fuel prices, "either not playing at all or significantly reducing their input." Earlier, the Central Bank of the Philippines ordered payment platforms to remove iGaming site links in August last year, which had an immediate impact: online revenue from Q2's 59.3 billion pesos plummeted to 41.9 billion in Q3, and continued to decline to 36.8 billion in Q4. Online revenue surpassed offline in the first three quarters of 2025, but has been overtaken in the last two quarters. Meanwhile, the termination of POGO (Philippine Offshore Gaming Operators) activities by the end of 2024 had a significant impact on offline casino revenue—Tengco estimated that there were 350,000 POGO employees in the Philippines before the ban, "even if they only went to the casino once a month, there were over 1000 players every night, which was a real business driver."
Decoupling regulation and operations, accelerating the privatization of Casino Filipino
Tengco frankly stated that Pagcor's mode of being both referee and player is unique worldwide and must be reformed. Currently, Pagcor's 38 Casino Filipino locations are still "bleeding" in leased premises—70% of GGR is forcibly allocated to various public institutions, and after privatization, only about 25% of license fees and commercial taxes will need to be paid. Tengco believes that the privatized Casino Filipino can profit as a "community casino," and considers that the social stigma of gambling has largely dissipated: "Now people just want to enjoy life, go out for a meal and try their luck, it has become a part of daily life." After decoupling, Pagcor will significantly streamline from the current 8000 employees, "leaner and more powerful." Tengco said he would provide generous retirement and additional incentive schemes, and has already recognized the union PAGCEA as the official representative of the employees. Specific progress is still pending assessment by the Government-Owned and Controlled Corporations Governance Commission (GCG), and he hopes to get approval in the coming weeks and start privatization by the end of the year.
Tightening online gaming regulation, minimum guarantee fees spark exit rumors
Although Tengco cut the iGaming tax rate from 55% to 30%, operators are still complaining that the new rules are harmful—Pagcor restricted TV advertising and outdoor marketing, reduced player rebates, and from June onwards implemented a minimum guarantee fee (MGF): operators with online casino games pay 9 million pesos per month, those without pay 3 million pesos, and next January these will respectively increase to 10.5 million and 4 million pesos. Although the implementation was delayed due to the US-Iran conflict, it is reported that established iGaming brands are considering closing their platforms in the Philippines. Tengco's response was clear: "I also gave them enough time, while just cleaning out those who shouldn't be here." Pagcor's online license cap is 70, currently active 63, but **80% of online gaming fees are contributed by 40%** of operators. On the content supply side, Pagcor has begun issuing licenses to overseas game suppliers, Tengco revealed that he is in deep negotiations with large international gaming companies, "they were illegal before, now they are ready to confess to Pagcor." He declared: "Remember my words, you will be surprised." After issuing licenses, he will "cut off the throat of the gray market." Blask's data shows that licensed operators currently account for less than 40% of the total demand for online gaming in the Philippines, but the licensed market share has nearly doubled in the past year.
Building its own headquarters, a 45-year dream finally comes true, comprehensive legislation insures the industry
Tengco is also building a Pagcor headquarters building worth 40 million US dollars, expected to be completed in early 2028—"After 45 years, Pagcor will finally have its own corporate center." The building covers 40,000 square meters, located between the Entertainment City integrated resort cluster and Newport World Resort, constructed by San Miguel Corporation, with rental income from retail and vacant office spaces covering the building's maintenance costs. If Tengco can move the decoupled purely regulatory Pagcor into the new building and promote the implementation of national iGaming legislation by June 30, 2028, his legacy will be far more profound than that headquarters building. As he said, with a legal framework, "the industry will be more stable, more structured, and not easily abolished."
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
