The Philippine Amusement and Gaming Corporation (PAGCOR) is broadening its regulatory approach to cover more of the online gaming ecosystem as illegal operators, new payment models and artificial intelligence create fresh challenges for the regulated market.
Speaking at the IAG EXPO, PAGCOR Assistant Vice President Jessa Mariz Fernandez said the regulator can no longer focus only on companies directly offering gaming products to consumers. Instead, responsibility must extend across the wider network of technology providers, payment companies, Gaming System Administrators, B2B suppliers and other supporting businesses.
Regulation Moves Beyond Operators
Fernandez said the growing complexity of the iGaming industry means that regulatory responsibility has to follow the entire supply chain.
PAGCOR has already strengthened requirements for B2B providers and Special Class of BPOs (SCBPOs), while introducing transition rules for suppliers working with accredited Gaming System Administrators.
The regulator has also expanded its Offences and Penalties Framework and introduced rules covering cash rebate and cashback programmes.
According to Fernandez, the goal is not simply to create more regulations, but to make responsibilities clearer and ensure that the same standards apply throughout the market.
Illegal Operators Remain a Major Concern
One of PAGCOR’s biggest challenges is the competition between licensed businesses and operators working outside the regulated system.
Licensed companies must absorb the cost of compliance, while illegal operators can avoid those requirements while still targeting the same players. Fernandez argued that this creates an uneven market and can weaken confidence in the regulated sector.
PAGCOR is therefore working with law enforcement agencies, financial institutions, payment providers, technology companies and other government bodies to disrupt illegal gaming activity.
The issue comes as the Philippines continues to hold a leading position among regulated online gaming markets in Asia. According to the SiGMA Asia Market Report 2026, online gaming revenue in the country surpassed $1 billion per month at its peak during the April 2025 to March 2026 period.
Payments Become Part of the Regulatory Focus
Payment infrastructure is another area receiving greater attention.
Following the delinking of electronic wallets from gaming applications, both operators and players have had to adjust to changes in how gaming transactions are handled.
PAGCOR has responded by updating its accreditation procedures for payment gateways and payment channels. The changes are designed to bring the gaming payment framework closer to requirements applied to institutions supervised by the Bangko Sentral ng Pilipinas (BSP).
For PAGCOR, reliable and properly regulated payment access is an important part of maintaining the integrity of the licensed online gaming market.
AI Creates New Regulatory Challenges
Artificial intelligence is also forcing regulators to rethink existing controls.
Fernandez said AI could strengthen fraud detection, compliance monitoring and other regulatory processes, but the same technology could also help bad actors make fraudulent activity more sophisticated.
PAGCOR is consequently continuing to strengthen player registration and Know Your Customer (KYC) procedures, alongside the National Database of Restricted Persons.
The regulator also launched a 24-hour National Problem Gambling Helpline in May with the Seagulls Flock Organization, offering confidential assistance to players and their families.
Market Faces Revenue Pressure
PAGCOR’s regulatory changes come while the Philippine gaming market is dealing with falling gross gaming revenue.
GGR dropped 20.33% year-on-year to PHP88.13 billion (€1.29 billion) in the second quarter of 2026, following a 15.87% decline to PHP87.60 billion (€1.28 billion) in the first quarter.
Fernandez said the decline should be viewed as part of a market that is maturing and changing rather than simply as a sign of deterioration.
PAGCOR is also calling for greater international cooperation as online gambling becomes increasingly interconnected across borders.
For the regulator, the next stage of the Philippine iGaming market will depend not only on growth, but on how effectively operators, suppliers, payment providers and technology companies are governed.
Source: SiGMA World