The far-reaching consequences of conflict in the Middle East are beginning to place a considerable strain on the Asian gambling sector, as PAGCOR chief Alejandro Tengco emphasised the importance of collaboration between regulators.
As oil prices continue to surge amid the ongoing geopolitical tensions, the Philippine Amusement and Gaming Corporation (PAGCOR) Chief Executive warned that the challenges for the industry encompass a myriad of markets, including Singapore, Macau and the US.
Speaking at Manila After Dark, hosted by Inside Asian Gaming in the Philippines, Tengco emphasised that the global gambling market is ‘feeling the impact of the oil crisis’.
“It is important that we come together, that we continue these conversations, and that we support each other as an industry,” he said.
“This is not a good time for everyone,” he said. “Gaming jurisdictions globally are feeling the impact of the oil crisis, and even more progressive countries like Singapore, Macau, and the United States are not spared.”
He added that PAGCOR is adjusting to a new, tougher economic climate to ensure stability and that safer gambling remains at the heart of what it is doing.
“At PAGCOR, we will adjust what we need to do. We have to be in tune with the times and ensure that responsible gaming remains at the centre of what we do.”
The global oil supply has been significantly disrupted since the war broke out in February, which has seen the price per barrel surge to as high as $118 compated to a pre-war price of aproximately $70.
At the time of writing, the price of oil sits at around $97 per barrel.
The impact of this uncertainty presents a significant concern for the global gaming industry.
Primarily, tourist numbers, especially to Southeast Asia, are likely to be impacted by disruption to flight routes and an increase in the price of air travel due to the cost of fuel.
As the cost of everyday life increases for people around the world, discretionary spending on activities such as gambling will also decrease to meet these increased financial demands.
In addition, the rising cost of the global supply chain will also force up the cost of manufacturing gaming equipment, placing a greater financial burden on casinos.
Although the Philippines’ Department of Tourism noted a 10% year-on-year increase in visitor numbers in the first quarter of 2026 to 1.82m, the real impact of the tensions will be seen in the months to come.
Operators also on alert
It’s not solely regulators that are readying for significant impact in the Asian market, with Genting Singapore also feeling the need to reassure investors that it is monitoring developments.
Updating investors, the group stated: “Given the evolving nature of the situation, Management remains focused on evaluating a range of potential direct and indirect effects, including possible impacts on international travel flows, cost conditions and broader macroeconomic sentiment.
“As conditions remain uncertain and subject to change, it is premature to draw definitive conclusions on the potential effects on the Group.
“The Group will continue to monitor developments closely and respond as appropriate should conditions materially evolve. Over the longer term, the Group’s diversified integrated resort offerings, strong financial position and Singapore’s status as a safe, well-regulated and well-connected destination support its ability to manage external uncertainties while maintaining operational resilience.”
Outside of the Philippines, Macau’s government has also confirmed it is considering covering the cost of travel from China’s Guangzhou Baiyun International Airport in an effort to boost tourism numbers.
Travel to Hong Kong, where Macau already runs a similar scheme, has been impacted by the war. However, flights to Guangzhou remain largely undisrupted.
On the new proposals, Tai Kin Ip, Macau’s Secretary for Economy and Finance, said: “The MSAR Government will continue to diversify its range of tourism products, organise major events, improve supporting infrastructure, and strengthen publicity and promotion.”
Given that the economic impact of the war will continue to be felt for years to come, Tengco similarly emphasised that PAGCOR is preparing to adjust its approach in response to global circumstances to ensure it stays ‘in tune with the times’.
