Last week, the Philippines witnessed a major shake-up in its gaming sector as the entire board of directors of PAGCOR, including Chairman and CEO Alejandro Tengco, resigned.
This significant change in the state-run gaming authority coincides with ongoing reforms in the online gaming industry and a transition to a new regulatory framework.
The departure of Tengco and other board members was likely triggered by an order from President Ferdinand Marcos Jr., who recently demanded the resignation of all heads of government agencies and officials at the secretary level.
Later, this directive was extended to include senior executives of Government-Owned and Controlled Corporations (GOCCs), including PAGCOR.
In an official statement, PAGCOR confirmed the resignations, clarifying that all board members “submitted their courtesy resignations last week to give the President full freedom to carry out the reform of the government bureaucracy.”
Alejandro Tengco commented on his decision: “We serve at the pleasure of the President, and we will accept whatever the Chief Executive’s decision will be.”
Alongside Tengco, PAGCOR’s President and Chief Operating Officer Wilma Eisma, as well as board members Jose Maria Ortega, Francis Democrito Concordia and Gilbert Cesar Remulla also voluntarily stepped down.
Despite the submitted resignations, government authorities have informed the leadership of Government-Owned and Controlled Corporations (GOCCs) that they must continue performing their duties until an official decision is made by the President’s administration.
According to media reports, President Marcos’s drastic measures are driven by his desire to refresh the government’s composition following the poor performance of his supported candidates in the recent midterm Senate elections.
The mass resignations within PAGCOR’s board come at a critical time when the regulator is strengthening oversight of the gaming sector, with particular focus on anti-money laundering efforts and the regulation of offshore operators.
Last year, following President Marcos’s directive, PAGCOR banned POGO operations, requiring venues to cease activities by the end of 2024.
Recently, the regulator announced significant changes to the requirements for B2B service providers, mandating for the first time that they obtain official approval. While this is not an official license like that required of operators, obtaining approval from the Philippine regulator will be compulsory for all entities supporting operators.
Keith McDonnell, Director at the KMI Group, noted in an interview that this policy change is a logical and natural step in the regulator’s efforts to enhance control and supervision.
“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 remains unclear what steps PAGCOR will take next and whether Tengco and the other board members will be reinstated after President Marcos begins his bureaucratic reforms.
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