The Philippine Amusement and Gaming Corporation (PAGCOR) has underscored the crucial role of licensed online gaming in supporting the government’s budget priorities, while raising alarms over the risks posed by unregulated operators. A report submitted to the House Committee on Games and Amusements revealed that from January to July 2025, the regulated sector generated PHP69 billion (US$1.2 billion) in license fees.

Licensed Sector Drives Billions in Funding

According to PAGCOR, electronic games contributed PHP41 billion of the total, with another PHP28 billion coming from other online offerings such as e-bingo and bingo grantees. PAGCOR Chairman and CEO Alejandro Tengco emphasized that this performance positioned the licensed industry as “one of the government’s biggest revenue drivers” for the year.

In the first seven months alone, the sector channeled PHP27.47 billion into “nation-building” initiatives. Among these, PHP14.72 billion was allocated to support the Universal Health Care Law. Additional revenues are earmarked for large-scale projects, including the construction of new schools, socio-civic centers, wellness facilities, and e-learning hubs.

As reported by the Philippine News Agency, Tengco highlighted the broader impact of these contributions, stating: “Every peso we collect from the gaming sector translates to meaningful projects such as classrooms for our children, health programs for our people, and safe spaces for communities in times of calamity. This is how we ensure that gaming directly benefits Filipinos.”

Beyond government remittances, PAGCOR noted that its corporate social responsibility (CSR) programs continue to benefit from the sector’s growth. These projects expand into community development and disaster relief efforts, reflecting the regulator’s aim to maximize the social utility of gaming revenues.

Tengco described online gaming as a vital source of funding: “Because of its huge potential, online gaming has become an important source of funds for our nation-building commitments, including PAGCOR’s support for education, health care, and community development.”

Rising Concerns Over Illegal Operators

Despite the sector’s strong financial performance, Tengco warned of a parallel threat from unlicensed sites. He cautioned that such operators target players of all ages without adequate safeguards, undermining both consumer protection and government revenues.

“These illegal sites not only deprive the government of much-needed revenues but also expose Filipino players to numerous risks,” he said.

PAGCOR has pledged to intensify monitoring and regulatory enforcement to curb these activities. “PAGCOR is committed to strengthening regulation and enforcement to ensure that only legitimate and properly monitored operators are allowed to operate,” Tengco affirmed.

The renewed defense of online gaming comes at a time when some lawmakers have floated proposals to tighten restrictions or even shut down certain segments of the industry. In parallel, the Bangko Sentral ng Pilipinas recently directed digital wallet providers to cut access to gambling-related transactions, signaling increased scrutiny of payment channels linked to online play.

While critics raise concerns about social risks tied to gambling, PAGCOR maintains that effective oversight of licensed operators provides a safer alternative and secures vital resources for public projects. For Tengco, the balance lies in allowing regulated companies to operate under strict conditions while pursuing illegal entities that undermine the system.

With more than PHP69 billion collected in just seven months, the regulator insists the legal framework around online gaming is delivering tangible benefits to Filipino communities. The challenge now, Tengco noted, is ensuring that this momentum is not weakened by the unchecked expansion of unregulated sites.