Pagcor chief downplays casino risks ahead of 2027 FATF review

Contributory risks that could drive the Philippines back to the highly avoided "grey list" are not expected to come from the local gambling industry, according to the Philippine Amusement and Gaming Corp. (Pagcor), the state-run gaming regulator.

This comes as Pagcor’s oversight of high-stakes junket operations remains a focus—a measure that coincides with a slowdown in foreign high-rollers caused by reignited military conflicts in the Middle East.

Speaking to reporters last Tuesday, Pagcor Chairman and Chief Executive Officer (CEO) Alejandro H. Tengco noted that the regulator and the operations it oversees were not the primary cause behind the Philippines’ previous inclusion on the financial watchdog's watchlist.

Following the country's recent exit and ahead of the upcoming 2027 review, Tengco said PAGCOR has become more careful and sensitive to issues surrounding illicit money flows. However, he maintained that legal gaming was not the reason behind the original grey-list placement.

Tengco believes that if the Philippines finds itself standing face-to-face with a grey-list return, those risks will stem from elsewhere.

“I don’t think [the risk will come from the gaming sector]. There aren’t any large transactions; activity has actually weakened,” Tengco said. “Even foreign players are not able to play because they are concerned about the war in the Middle East.”

Manila Bulletin

Meanwhile, domestic players do not appear to contribute significantly to overall activity, with Tengco noting that Filipinos are “not big gamblers.”

Still, Tengco assured that PAGCOR maintains strict oversight over high-stakes gaming, as recent assessments revealed that the casino sector remains vulnerable to financial crime.

The evaluation highlighted specific risks tied to high-value cash transactions, VIP and junket operations, electronic gaming, remote channels, and weak internal controls—threats that prove challenging to curb under standard measures.

These findings prompted the regulator to enforce tighter safeguards against illicit capital flows.

For its part, the Bangko Sentral ng Pilipinas (BSP) has mandated domestic lenders to bolster oversight of accounts connected to casino junket operators, warning that financial flows tied to the high-stakes sector pose elevated money laundering risks.

Tengco noted that PAGCOR has grown increasingly stringent in monitoring junket gambling, particularly regarding reporting requirements. Operators face severe penalties, including license suspension or cancellation, if they fail to comply with regulatory standards.

Pagcor is coordinating with AMLC

Pagcor is actively coordinating with the Anti-Money Laundering Council (AMLC) through regular meetings to evaluate reportorial thresholds and identify operational vulnerabilities ahead of the next Financial Action Task Force (FATF) review. Licensed casinos are required to report every transaction exceeding ₱500,000, making reportorial compliance a primary focus area.

The regulator also continues to combat a surge in illegal gambling platforms, which Tengco informally estimated account for roughly half the total market.

To safeguard players and protect market share, Pagcor is partnering with state agencies, including the Department of Information and Communications Technology (DICT), the National Telecommunications Commission (NTC), and the Cybercrime Investigation and Coordination Center (CICC).

Unlicensed websites and apps “remain a constant problem,” Tengco said, emphasizing that the regulator must stay vigilant. “We just have to be very persistent, because if we are not persistent and we lie low, then the more they will be able to eat into our market.”