A directive to unlink iGaming from e-wallets in the Philippines appears to have had unintended consequences.
Although PAGCOR’s Chair Alejandro Tengco confirmed that iGaming transactions fell by 50% at legally authorised providers since the ultimatum from the Philippine Central Bank (BSP), he also warned that the regulator has seen an uptick in users turning to the black market.
A study from the research company, The Fourth Wall, supported Tengco’s observations, finding that unregulated sites had posted a 40% jump in users, while regulated sites experienced a 70% drop.
Speaking during a House briefing on the Philippines’ 2026 budget, Tengco also laid bare the size of the black market in the Philippines.
“Currently, 60% of what we see in the [online gaming industry] are illegal operators,” he admitted. “They operate in countries like Russia, Dubai, Abu Dhabi, and Cambodia … it’s really hard to go after them.”
According to PAGCOR, there are approximately 12,000 illegal online gaming sites in operation, compared to just 77 licensed operators in the Philippines.
Rep. Brian Poe emphasised the significant revenue the Philippines’ Government is missing out on by players engaging with the black market, as he named eight unlicensed operators, each of which generate “$50m to $70M every month”.
“If you combine that per annum, we’re looking at basically $1.4 billion [in tax], which could be revenue because of the 30% that we’re supposed to be getting. That’s just from these eight companies alone,” Poe lamented.
Is this the end for iGaming?
Set in the background of these revelations is the uncertainty that surrounds iGaming in the Philippines.
Last week, an inquiry began to consider the future of the Philippines’ online gaming sector, including the prospect of a total ban.
Although reports suggest that this is the stance favoured by Senators, stakeholders within the industry have repeatedly warned that prohibition will simply force more players towards the black market, where they are not afforded the same protections provided by regulated operators.
“The social ills being blamed on online gaming stem from the illegal market. That is where underage gambling happens. That is where financial abuse thrives. Target that, and the harm disappears,” explained Eusebio Tanco, Chair of the Philippines’ largest operator Digiplus, in an impassioned plea to Senators over the financial consequences of prohibition, including the prospect of 50,000 job losses.
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