BARCELONA / MANILA – The Philippine Amusement and Gaming Corp (PAGCOR) is currently at the center of a radical industrial transformation. Chairman and CEO Alejandro Tengco revealed at the ICE Barcelona 2026 conference that the regulator is drafting a critical position paper for the Bangko Sentral ng Pilipinas (BSP) to restore links between licensed online gaming sites and e-wallet providers. Simultaneously, the industry is bracing for a wave of mergers as aggressive new financial thresholds take effect.
Restoring the E-Wallet Link: A Shield for the Legal Market
In August 2025, the Philippine Central Bank ordered e-wallets to delink from online gambling platforms to prevent unauthorized transactions. PAGCOR argues this move inadvertently pushed players toward the black market.
- The Position Paper: PAGCOR will outline comprehensive safeguards implemented across the domestic eGames sector to convince the BSP that reconnection is safe and necessary.
- Player Protection: Tengco emphasized the need to show “big changes” in the industry to prove that keeping players within the regulated ecosystem via seamless payments is the most effective way to monitor activity.
- Revenue Milestone: Despite the delinking setback, the Philippine online gaming sector reached a historic high in 2025, producing over Php 200 billion (approx. USD 3.37 billion) in Gross Gaming Revenue (GGR).
The 2026 Great Consolidation: Survival of the Fittest
Following a December 2025 memorandum, PAGCOR has introduced high financial barriers that are expected to trigger a massive wave of mergers in the first half of 2026:
- Staggering Financial Requirements: Licensed operators must now generate at least Php 30 billion in monthly GGR and pay a Php 9 billion monthly “Minimum Guaranteed Fee,” regardless of actual earnings.
- Platform Purge: Industry experts predict that the number of active platforms—currently at 33—could drop to as few as 15 by April.
- Strategic Mergers: Many small to mid-sized operators are already teaming up with established land-based casinos to combine revenues and meet the new regulatory standards.
“In spite of the delinking, we set a new record GGR in online gaming in 2025. Now, our goal is to strengthen the B2B sector and use higher standards to integrate unregulated activities into our formal framework.” — Alejandro Tengco, Chairman and CEO of PAGCOR
Industry Insight: Shifting to a Mature Market
Tony Manguiat, President of HHR Philippines, noted that fewer than 20 platforms likely have the independent financial capacity to meet these new demands. Beyond the guarantee fee, operators are required to remit 30% of their GGR to PAGCOR, including a 1% allocation for social development programs.
This regulatory “storm” is designed not to shut down the industry, but to consolidate it—phasing out weaker players in favor of large-scale, highly compliant entities that can be more effectively overseen by the state.
