PAGCOR Chair on busting the Philippines’ black market

Summary

When Alejandro H. Tengco became chairman and CEO of PAGCOR in 2022 he found an online gambling market dominated by illegal operators. Through a mix of steep licence-fee reductions, a public licence-verification platform (PAGCOR Guarantee), enforcement co-ordination with police and immigration, a presidential ban on offshore gaming (POGOs) and strengthened player-protection measures, the regulator reversed the trend.

Between January 2023 and December 2025 the share of online gross gaming revenue attributed to legal operators rose from around 8% to over 50%. PAGCOR also introduced measures to deter speculative licences, is decoupling its operator role from its regulator role, and is rolling out responsible-gaming tools including a 24-hour hotline and AI monitoring of player behaviour.

Key Points

Licence-fee cuts: PAGCOR reduced online licence fees progressively from outrageously high rates down to 30%, widening the taxable base and encouraging legal entry.
PAGCOR Guarantee: a public verification platform helps players confirm whether an operator is licensed, improving transparency and trust.
POGO ban and enforcement: the 2024 ban on offshore gaming and closer co-ordination with the Philippine National Police, Bureau of Immigration and NBI have driven down illegal activity.
Responsible gaming measures: outdoor-advert bans on ‘big win’ marketing, a forthcoming 24-hour hotline, deposit limits, self-exclusion and AI monitoring to protect players.
Market discipline: a PHP9.5m minimum guarantee for inactive licence-holders discourages speculation and frees capacity for genuine operators.
Decoupling operator/regulator: PAGCOR plans to divest its casinos to remove conflicts of interest and boost regulatory credibility, subject to government approval and worker protections.
Strict KYC and one-strike policy: enforcement includes licence cancellations for major breaches such as poor KYC or revenue under-reporting.

Why should I read this?

Want to know how a regulatory body actually turned the tables on a booming black market? This is it — a practical playbook: cut punitive fees, make licences visible, crack down on the rogues and show you mean business. Short version: it worked, and it’s relevant if you care about regulation, market recovery or responsible gambling. We’ve read the detail so you don’t have to.

Context and Relevance

The Philippines has long been a cautionary tale for online-gaming regulation. Tengco’s reforms show how aligning commercial incentives with enforcement and player protection can pull revenue back into the legal economy. The case matters beyond the Philippines: it demonstrates a model for jurisdictions wrestling with illegal operators, shows practical steps for restoring trust, and highlights the governance question of separating operator and regulator roles — an issue many markets still face.