Offshore companies dominate more than half of the online gambling market in the Philippines.

PAGCOR Chairman and CEO Alejandro Tengco recently participated in a radio interview, where he discussed Senator Juan Miguel Zubiri's proposal to entirely suspend online gambling in the country.

The Inquirer later reported on the interview, highlighting Tengco as a pragmatic executive who understands the challenges facing the iGaming market in the Philippines. Tengco argued that the proposed ban by Zubiri is not a viable solution. Currently, PAGCOR-licensed gambling companies represent only 45% to 50% of the entire market, with illegal operators making up the rest. Suspending the regulated market would inadvertently benefit these illegal entities. Tengco noted that illegal operators are targeting Filipino players from abroad, hindering the regulated market's potential. The problem persists domestically, too, with physical advertisements like billboards being criticized. Tengco reassured that PAGCOR is addressing these issues, allowing licensed operators time to modify their offerings and comply with regulations. Meanwhile, Tengco expressed support for Senator Sherwin Gatchalian's proposal, which aims to enhance consumer protection without disrupting the regulated market. This includes stricter controls on gambling advertisements and new measures to combat illegal gambling. Additionally, reducing access to certain payment gateways, like GCash and Maya, and imposing deposit limits are other strategies to safeguard consumers.

Tengco mentioned that PAGCOR is strengthening its efforts to assist those experiencing gambling-related issues by implementing a 24/7 hotline and utilizing AI to detect and monitor signs of addiction. Among the suggested strategies are self-exclusion tools and mandatory cooling-off periods, which Tengco believes will help players manage their gambling habits. However, significant work is still needed to achieve sustainable levels of regulated gaming. Even in regions with relatively high regulation (meaning more players gamble legally), up to 50% of the gross gaming revenue could still be directed to illegal operators. While Tengco may not yet have a comprehensive plan for how PAGCOR should implement these necessary changes, his opposition to a widespread ban on online gambling is a reasonable stance.