Speaking during a gathering of the Association of Independent Licensed Gaming and Amusement Operators, Inc. (AILGAO) in Muntinlupa City on Wednesday, Mr. Tengco acknowledged that recent reforms have prompted adjustments across the E-Games sector.

He cited in particular the mandatory de-linking of e-wallets from online gaming platforms which he said is intended to strengthen the credibility of legitimate operators while preventing potential harm on young and vulnerable players.

“You may be interested to know that in the third quarter of 2025, we recorded an industry GGR that was a bit lower than last year,” The PAGCOR chief said. “But this reflects an industry transitioning to stronger and safer practices.”

He noted that the E-Games and E-Bingo segment still grew 17.4 percent in the third quarter compared with the same period last year, but admitted that the de-linking policy triggered a temporary GGR decline in August and September.

“We know that many of you were affected by this sudden development,” he said. “However, we must not look at these reforms as obstacles but as safeguards designed to protect your players, your businesses, and the entire ecosystem you operate in.”

Mr. Tengco also warned that while legitimate licensees are adapting responsibly, illegal operators continue to expand aggressively without paying taxes or observing player protection protocols.

“They expose players to financial fraud and data theft,” he said. “But the worst part is, they damage the reputation of the entire industry, including the legitimate ones.”

Mr. Tengco also commended the licensed operators for their resilience and willingness to comply with more stringent rules.

“Tonight, we recognize all of you for being the backbone of the legitimate online gaming sector: innovating and adapting quickly, and staying compliant even when the rules become stricter,” he said. “You understand that integrity is the foundation of sustainability.”

During the event, AILGAO presented Mr. Tengco with a “Gaming Exemplary Leadership Award” in recognition of his support for licensed operators and his efforts in championing safer and more transparent gaming standards nationwide.

AILGAO President Rafael Tabora, for his part, expressed gratitude for PAGCOR’s initiatives and pledged the group’s full cooperation. “We welcome these reforms because they strengthen the legitimacy of our operations and create a safer environment for our players,” he said.