Disruption reigned in the Philippines overnight as the board, alongside Chairman and CEO Alejandro Tengco, issued resignations.
The monumental shift in the market comes as the Philippines continues to transition its iGaming framework into a new era.
The shock decisions of Tengco and the board were likely fuelled by the directive of President Ferdinand Marcos Jr, who last week called for the resignations of all government heads of agencies and secretary-ranked officials in the Philippines.
Marcos then expanded the directive to include all ranking executives of Government-Owned and Controlled Corporations (GOCCs), of which PAGCOR is one.
In a short statement, PAGCOR confirmed the exits, stating that all the members of the agency’s Board of Directors “have tendered their courtesy resignations last week to give the President a free hand in reorganising the bureaucracy”.
On his decision, Tengco said: “We serve at the pleasure of the President, and we will accept whatever the Chief Executive’s decision will be.”
Along with Tengco, those who “voluntarily stepped down” were PAGCOR’s President and COO Wilma Eisma and Directors Jose Maria Ortega, Francis Democrito Concordia and Gilbert Cesar Remulla.
Despite calling for the resignations, a notice from the government advised affected members of GOCCs that they should continue to report for work until action is taken by the President’s office on the courtesy resignations.
According to reports, President Marcos has taken such drastic steps to reshape his government following a disappointing performance from his preferred senatorial candidates at this month’s mid-term elections.
The upheaval among PAGCOR’s board comes at a time when the body is seeking to strengthen the Philippines’ regulatory landscape and tackle issues such as money laundering and the offshore gaming industry.
Acting on the orders of President Marcos, last year, PAGCOR banned POGOs, forcing the venues to cease operations by the end of 2024.
More recently, the body announced sweeping changes to its regulatory requirements for B2B service providers, requiring them, for the first time, to gain official approval. While not an official licence, as required by operators, it will be mandatory for those supporting operators to gain the approval of the Philippines regulator.
Keith McDonnell, Director at the KMI Group, told iGaming Expert that the policy change was the natural progression for the regulator as it continues its push to strengthen regulatory oversight.
“It’s a natural next step for PAGCOR to ensure end-to-end policing and regulation of all iGaming-related business in the Philippines and avoid the infiltration of ‘bad actors’, something they have tried hard to eradicate since the regulator overhaul started,” he explained.
It is not yet known what the next steps will be for PAGCOR, or if Tengco and the rest of the board will be reinstated once President Marcos begins his bureaucratic reorganisation.
