The Philippine Amusement and Gaming Corporation is expanding regulation across the country’s online gaming ecosystem as artificial intelligence, illegal operators, payment changes and declining gaming revenue test the market.
Speaking at the inaugural CiG iDEA Summit at the IAG EXPO in Manila, PAGCOR Assistant Vice President Jessa Mariz R. Fernandez said regulation could no longer focus only on operators directly serving players. “Responsibility has to follow the entire ecosystem.”
PAGCOR has strengthened rules for B2B providers and Special Class BPOs, introduced transition guidelines for providers working with accredited Gaming System Administrators, issued rules covering cash rebates and cashback programs, and expanded its Offenses and Penalties Framework. The regulator has also been consolidating requirements and applying more consistent standards across regulated businesses.
The changes come as the Philippine gaming market undergoes a slowdown. Gross gaming revenue fell 20.33 percent year over year to PHP88.13 billion in the second quarter of 2026 after declining 15.87 percent to PHP87.60 billion in the first quarter.
Fernandez said PAGCOR views the correction as an opportunity to reassess whether existing regulations remain appropriate as the market matures.“A successful gaming market is not defined simply by how fast it grows. It is defined by how well it is governed.”
Illegal gaming remains another major concern. Fernandez said licensed operators face compliance costs that unregulated businesses avoid while competing for the same customers. PAGCOR is working with law enforcement, financial institutions, payment providers, technology companies and other government agencies to address illegal activity and protect consumers.
Payment regulation has also become more important following the delinking of electronic wallets from gaming applications. PAGCOR has amended accreditation procedures for payment gateways and channels to align them with policies governing institutions supervised by the Bangko Sentral ng Pilipinas.
Technology is expected to pose a further regulatory challenge. Fernandez said AI could strengthen fraud detection, compliance monitoring and regulatory efficiency, while also enabling more sophisticated fraudulent activity.
“We cannot regulate tomorrow’s technology using only yesterday’s assumptions,” she said.
PAGCOR is also strengthening player registration, Know Your Customer controls and the National Database of Restricted Persons. In May, it launched a 24-hour National Problem Gambling Helpline with the Seagulls Flock Organization.
Fernandez also pointed to New Zealand’s planned regulated online casino market, which is expected to issue up to 15 licenses by year-end, as another regulatory model being closely watched as jurisdictions address similar issues involving technology, consumer protection and market oversight.