Pagcor may bring esports into the regulated Philippine gaming system as the country deals with a slower start to 2026.
Good to Know
Alejandro Tengco used SiGMA Asia 2026 in Manila to make two points at once: egaming growth has cooled, and Pagcor is now studying esports regulation.
The Philippine gaming market had a strong 2025, with GGR rising 6.39% to PHP396.14bn as online and electronic gaming offset weaker brick and mortar casino revenue. That balance changed in Q1 2026. Pagcor said total industry GGR dropped to PHP87.60bn, mainly because e gaming fell to PHP39.90bn, or 45.55% of the market.
Land based casinos moved back into the top spot during the quarter. Licensed casinos produced PHP44.52bn, equal to 50.83% of total GGR. That gives Pagcor a useful reminder that physical casinos still provide a steadier base when digital spending slows.
Tengco said:
“Since the Middle East crisis, the momentum has been totally moderated in the first quarter of 2026.”
He also linked the contraction to “softer discretionary spending, and broader economic pressures”.
Pagcor is not treating the slowdown as only a revenue issue. Tengco said the agency was “trying to study” whether it “could regulate esports”.
“In today’s world, esports is one of the important facets that the young generation is involved in,” he noted.
That line matters because esports sits close to betting, streaming, youth audiences and digital payments. Any future Pagcor framework would likely need clearer rules on licensing, age checks, integrity, responsible gambling and whether esports products count as wagering, entertainment, or both.
Tengco said:
“These developments remind us of how unpredictable the gaming industry could be.”
Pagcor has also tied the next phase of growth to safer gambling. The regulator launched a 24/7 National Problem Gambling Helpline in May, with callers routed to trained counselors and mental health professionals.
According to the Pagcor chief:
“The true measure of this industry is not simply size or rate of expansion, but our ability to ensure that gaming remains properly regulated, socially responsible, and genuinely beneficial to the communities we all serve.”