POGO ban both challenge and opportunity, PAGCOR Chief says
Philippine Amusement and Gaming Corporation (PAGCOR) Chairman and CEO Alejandro Tengco described the Philippine gaming sector as pivotal, noting that the industry had overcome multiple challenges in recent years.
“We have faced many complex challenges,” Tengco said during his State of the Industry Address at the ASEAN Gaming Summit happening in Manila, Philippines. “A responsible and well-regulated gaming industry is a powerful driver of economic growth, job creation, tourism, and national development.”
POGO ban and its impact
Tengco acknowledged the Philippine Offshore Gaming Operators (POGO) ban as both a challenge and an opportunity. Following President Ferdinand Marcos Jr.’s 2024 State of the Nation Address (SONA), PAGCOR directed all internet gaming licensees to wind down operations by 31 December 2024. “When the ban was formalised on 5 November 2024, through Executive Order 74, PAGCOR was tasked to lead the technical working group on employment recovery and reintegration,” Tengco explained. The group collaborated with government agencies to assist displaced workers, including organising job fairs with the country’s Department of Labor and Employment (DOLE)
Positive impact on financial integrity
The POGO ban played a key role in improving the country’s financial standing. “The ban also played a crucial role in the Philippines’ recent removal from the Financial Action Task Force [FATF] grey list,” Tengco said. He credited the move as proof of the Philippines’ dedication to combating money laundering and enhancing financial system integrity.
Despite the offshore gaming ban, Tengco highlighted PAGCOR’s support for Special Class BPOs (SCBPOs) that focus solely on back-end services rather than direct gaming. “We championed the retention of Special Class BPOs because they provide back-end support functions,” Tengco said. He emphasised that these operations have attracted major international gaming operators to establish backroom operations in Manila, creating thousands of highly skilled jobs.
Industry growth despite POGO exit
Tengco reported that the Philippine gaming industry experienced strong growth in 2024, achieving PHP410 billion (€6.6 billion) in gross gaming revenue (GGR), a 25 percent increase from 2023. “Brick-and-mortar casinos contributed PHP201 billion (€3.2 billion), while the eGames and eBingo sector surged 165 percent, generating PHP154.5 billion (€2.5 billion) in GGR,” he said. Tengco credited this growth to evolving technology and expanding online gaming platforms.
PAGCOR reduced licence fees for eGames to encourage legal operators starting 1 January 2025. “Our rates now stand at only 30 percent,” Tengco stated. He explained that this change aligns with global standards, leading to previously unregistered operators seeking proper licensing.
Commitment to responsible gaming
With increased industry growth, Tengco stressed PAGCOR’s commitment to promoting responsible gaming. “We are strengthening our responsible gaming programs and will require licensees to allocate part of their GGR for nation-building projects,” he said. Tengco assured stakeholders that market integrity and responsible gaming remain priorities.
“Indeed, the best days of Philippine gaming are still ahead of us,” Tengco concluded.
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