Gaming sector hit by Middle East tension: PAGCOR Chief
The Philippine gaming industry is beginning to feel the strain of escalating geopolitical tensions in the Middle East, with rising fuel prices weighing on operations, according to Philippine Amusement and Gaming Corporation (PAGCOR) Chairman and CEO Alejandro Tengco.
“This is not a good time for everyone,” Tengco said. “Gaming jurisdictions globally are feeling the impact of the oil crisis, and even more progressive countries like Singapore, Macau, and the United States are not spared.”
The warning comes amid a broader escalation of tensions in the Middle East, where recent military developments have unsettled global markets, disrupted travel flows, and threatened energy supply chains. The region remains critical to global oil distribution, particularly through chokepoints such as the Strait of Hormuz, making any instability immediately felt in global fuel prices.
For gaming-dependent economies such as the Philippines, the knock-on effects are significant. Increased fuel costs raise operational expenses for integrated resorts, airlines, and logistics providers, while also dampening consumer discretionary spending. Tengco noted that the impact extends beyond casino operators to the wider network of stakeholders supporting the industry.
“These external pressures are affecting not only gaming operators but also the local gaming industry stakeholders,” he said.
Geopolitical developments affecting gaming sector
The Philippine market is not alone in facing such headwinds. Across Asia and beyond, gaming operators are closely monitoring geopolitical developments. In Singapore, Genting Singapore has flagged Middle East tensions as a potential risk to tourism demand and operating conditions, even as it continues its Resorts World Sentosa 2.0 expansion.
Meanwhile, in the United Arab Emirates, major U.S. casino groups such as Wynn Resorts and MGM Resorts International have been placed on alert following reported missile and drone strikes in Dubai. Although their project sites were not directly hit, the developments underscore how geopolitical instability is beginning to intersect with the global expansion of the gaming industry.
Importance of strong industry ties
Despite these challenges, Tengco stressed the importance of maintaining strong industry ties during uncertain periods.
“Being together like this makes us forget, even for a while, the challenges we face,” he said. “It allows us to rekindle relationships, whether as clients, suppliers, or partners, and that is important, especially in difficult times.”
He added that sustained dialogue would be essential as the industry navigates shifting market conditions.
“It is important that we come together, that we continue these conversations, and that we support each other as an industry,” Tengco said.
Privatisation plan could reshape PAGCOR
Alongside immediate market concerns, Tengco also addressed long-standing structural reforms within PAGCOR, particularly the proposed separation of its regulatory and commercial functions.
The dual role has long been debated within the industry, with proponents arguing that a clear distinction would enhance transparency, governance, and investor confidence. Tengco confirmed that the proposal remains under review by the Governance Commission for GOCCs.
“Many are asking for the decoupling, and we are awaiting the decision of the GCG,” he said. “If we get the approval to privatise, it will be a game-changer.”
At the same time, Tengco emphasised that adaptability would be critical as both global and domestic conditions evolve. He reiterated the regulator’s commitment to responsible gaming, even as it considers strategic adjustments.
“At PAGCOR, we will adjust what we need to do,” he said. “We have to be in tune with the times and ensure that responsible gaming remains at the centre of what we do.”
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