ILLEGAL gambling accounts for about half of the Philippine gaming market despite government efforts to shut down unauthorized websites and applications, according to the Philippine Amusement and Gaming Corp. (Pagcor).
“Today, [the market is] 50 percent legal and 50 percent illegal,” Pagcor Chairman and CEO Alejandro Tengco told reporters at the Inside Asian Gaming Summit on Tuesday.
Tengco said the estimate was informal, acknowledging that the size of the illegal market was difficult to measure because unauthorized transactions are not documented in official industry data.
Illegal gambling operators are a persistent problem because they can quickly adapt to regulatory and technological measures, Tengco explained.
Technological advances had made the gaming market more fluid, benefiting legitimate operators but also giving illegal platforms new ways to evade enforcement.
“We just have to be very persistent,” Tengco said. “If we lie low, then the more they will be able to eat into our market.”
Pagcor is working with the National Telecommunications Commission, Department of Information and Communications Technology, and Cybercrime Investigation and Coordination Center to identify and block illegal gambling websites and applications.
To steer players toward regulated platforms, Pagcor is preparing to launch an application that will help users identify licensed casino and online gaming operators.
“If you click on the Pagcor app, you have a choice: licensed casino operators or online gaming operators,” Tengco said.
Pagcor has been urging players to use licensed platforms, where consumers have greater protection and transactions are subject to government oversight.
Meanwhile, Tengco expressed confidence that the Philippines would not return to the Financial Action Task Force’s (FATF) gray list of jurisdictions under increased monitoring.
The country is preparing for another evaluation of its anti-money laundering and counterterrorism financing framework. Tengco said Pagcor has been regularly coordinating with the Anti-Money Laundering Council (AMLC) to identify vulnerabilities and strengthen compliance in the gaming industry.
Pagcor’s anti-money laundering department has also been addressing concerns raised by regulators.
“There is a regular meeting with AMLC to address the issues. This early, they will look at where we are weak and where we should change,” Tengco said.
The Philippines landed on the FATF gray list in June 2021 but was cleared in February 2025 after implementing reforms in risk-based supervision, law enforcement, and the investigation and prosecution of money laundering and terrorism financing cases.
Continuous risk monitoring and Pagcor’s coordination with the AMLC would make another gray-listing unlikely, Tengco said.
