PAGCOR is preparing for further changes to its regulatory framework as it moves closer to ending its role as a casino operator in the Philippines, its Chair and Chief Executive Officer Alejandro Tengco said.
Speaking in a keynote at The Regulators Forum, Tengco said the regulator needed to remain receptive to feedback as the gaming market developed.
“What matters is that we remain open to corrections and that we are prepared to act when change is necessary,” he said.
“Our regulatory framework will continue to evolve as conditions change and as our experience gives us a better understanding of what works and where improvements are needed.”
Separating regulation and operations
Tengco said PAGCOR’s framework must protect the integrity of the gaming sector while giving operators a stable and predictable regulatory environment.
The planned withdrawal from casino operations is intended to support that objective. PAGCOR wants legitimate operators to compete on a level playing field, while maintaining public confidence in the integrity of the system, Tengco said.
The change comes as the Philippines continues to address a substantial black market. Illegal activity is estimated to account for 50% of the country’s total gaming market.
Tools for licensed-market visibility
PAGCOR is developing an app that will allow players to check whether they are using a licensed operator. The tool will build on the PAGCOR Guarantee page launched last year.
The regulator’s efforts also coincide with tighter expectations for payment providers. The Central Bank of the Philippines (BSP) has warned that providers could lose their licences if they do not prevent illegal casinos from using their services.
The BSP said gambling businesses had been found presenting themselves as merchants in other sectors, including beauty salons and bakeries, in order to avoid detection.
Payment providers will now face greater emphasis on collecting information about merchants. This includes ownership details and business licences, alongside maintaining a database of legitimate merchants.
For PAGCOR, the planned separation of casino operations from regulation is therefore taking place alongside efforts to make the licensed market easier for players and payment businesses to identify. Tengco said the regulator was “willing to learn” as the industry continued to evolve.
