The Philippine Amusement and Gaming Corporation (PAGCOR) has cautioned that surging oil prices, driven by ongoing tensions in the Middle East, are beginning to weigh on the Philippine gaming sector. The regulator warned that rising fuel costs are affecting both business operations and consumer spending, creating fresh uncertainty for operators and stakeholders across the industry.
Speaking at an industry event on April 14, PAGCOR Chairman and CEO Alejandro H. Tengco said the increasing cost of fuel is already influencing economic activity, which directly impacts gaming performance.
Fuel Costs Affect Consumer Behaviour and Industry Operations
Tengco noted that higher oil prices are reducing consumer purchasing power and putting pressure on business activity—two critical factors that influence gaming demand. He described the current environment as challenging not only for the Philippines, but also for major gaming jurisdictions worldwide.
“This is not a good time for everyone,” Tengco said, adding that even established markets such as Singapore, Macau, and the United States are also feeling the impact of the global oil price surge.
Wider Pressure Across the Gaming Ecosystem
According to Tengco, the economic impact extends beyond gaming operators. He stressed that suppliers, partners, and other stakeholders within the gaming ecosystem are also facing increasing pressure as higher fuel costs ripple through logistics, operations, and overall economic confidence.
Despite the headwinds, Tengco underscored the need for continued industry cooperation, especially during uncertain market conditions.
“It is important that we come together, that we continue these conversations, and that we support each other as an industry,” he said.
PAGCOR Reaffirms Focus on Responsible Gaming
While acknowledging the external pressures, Tengco said PAGCOR remains prepared to respond to evolving market conditions. He also reaffirmed that responsible gaming will remain a central focus of the regulator’s approach, even as the industry navigates economic instability.
Privatization and Decoupling Plan Still Under Review
Tengco also provided an update on the long-discussed proposal to separate PAGCOR’s regulatory and commercial functions. He confirmed that the potential “decoupling” remains under review by the Governance Commission for Government-Owned or Controlled Corporations (GCG).
“Many are asking for the decoupling, and we are awaiting the decision of the GCG,” Tengco said. He added that if approval is granted for privatization, it could significantly reshape the future of PAGCOR and the wider Philippine gaming market, calling it a potential “game changer.”
