Online gaming payments down 50% after e-wallet ban: PAGCOR
The head of the Philippine Amusement and Gaming Corporation (PAGCOR) has revealed that online gaming transactions in the country have dropped by as much as 50 percent following tighter restrictions on digital payments.
PAGCOR Chairman Alejandro Tengco (as depicted in featured image) told lawmakers during a House committee hearing that the sharp decline came after the Bangko Sentral ng Pilipinas (BSP) ordered banks and e-wallet platforms to remove gambling-related links. The directive, issued on 14 August 2025, applied to both payment apps operated by banks and third-party digital wallet services.
Rise in illegal gambling
Tengco said all PAGCOR-licenced operators had complied fully with the BSP’s order, but admitted that the move has fuelled a surge in illegal gambling activity. “I can assure that the licenced ones under our jurisdiction followed the BSP directive,” he said.
He estimated that 60 percent of operators catering to Filipino players are illegal, with many running websites hosted in Russia, Dubai, Abu Dhabi, and Cambodia.
“PAGCOR is observing, from Sunday to yesterday [19 August 2025], online gaming transactions fell by perhaps 50 percent”
~ Alejandro Tengco, Chairman, PAGCOR
According to Tengco, PAGCOR lacks the legal authority to shut down such websites directly. The regulator can only identify suspicious platforms and pass the information to law enforcement agencies for further action. He disclosed that around 12,000 illegal gambling sites are currently active, compared with only 77 licenced platforms under PAGCOR’s supervision.
Illegal operators, he warned, often lure players with larger bonuses and aggressive promotions that regulated firms are not permitted to offer. These incentives are deliberately designed to encourage repeat gambling behaviour and make it harder for users to stop.
Youth addiction concerns
Tengco linked the rise in youth gambling addiction to the influence of unregulated platforms. He insisted that licenced operators were not behind the addiction cases being reported, stressing that the “real problem” lay with offshore websites exploiting vulnerable players.
To curb harmful behaviour, PAGCOR is considering setting minimum deposit and betting requirements for licenced digital platforms. Tengco said the move would aim to discourage excessive gambling while promoting responsible play.
The PAGCOR chief added that the clampdown shows the urgent need for closer collaboration between regulators, financial authorities, and law enforcement agencies. Without stronger enforcement measures, he warned, illegal operators would continue to thrive despite restrictions on legal platforms.
Revenue outlook remains strong
Despite these setbacks, PAGCOR is forecasting revenues of PHP116.65 billion ($2.04 billion) for 2025. Of this, up to PHP65 billion ($1.14 billion) is expected to come from online gaming, underlining the continued importance of the digital sector to the regulator’s finances.
Though the BSP order has shown how quickly the market can be disrupted, but also shown how determined illegal operators are to maintain their presence. As Tengco warned, unless action is taken to curb unlicenced gambling, the social harms linked to the industry are likely to persist.
