Why PAGCOR must steady the ship after a turbulent 2025

The latest corruption allegations couldn’t have come at a worse time for PAGCOR’s leader, Alejandro Tengco, as the organisation seeks to steady the Philippines’ regulatory ship heading into 2026.

Accusations centre around a conflict of interest involving the family company of Tengco, have come at an unfortunate time for the organisation as it seeks to steady the Philippines’ regulatory ship heading into 2026.

Tengco has vehemently dismissed any suggestions from the media that he had influence on his family’s construction company, Nationstar Development Corporation, winning government contracts.

However, media investigations revealed that Nationstar, which was founded by Tengco in 2015 and is currently owned by his children, has secured more than 14 government contracts valued at Php 7.1bn (£90bn) since 2022, when he began his role with PAGCOR.

Tengco emphasised that he divested his interest in the construction company upon assuming leadership of the Philippines’ gaming regulator, having begun transferring ownership to his children as early as 2019.

“My position as Chairman and CEO of PAGCOR has no direct or indirect influence in the awarding of public works contracts to Nationstar,” said Tengco through a statement posted on PAGCOR’s website.

“There is no conflict of interest because under the Anti-Graft and Corrupt Practices Act (RA 3019) and the Code of Conduct of Government Employees (RA 6713), conflict of interest occurs when a public official has direct or indirect financial or pecuniary interest in any business contract or transaction in which they must intervene in their official capacity.”

Tumultuous 2025

The story closes out what has been a turbulent year for the Philippines’ gaming industry, as lawmakers in the country have repeatedly attempted to bring down regulated online gaming.

At the time of writing, the country’s Senate is still considering several bills that have called for a total ban on online gaming – citing the “silent epidemic” of gambling addiction in the Philippines.

In response, PAGCOR has been forced to defend the merits of supporting regulated iGaming, highlighting the significant income it generates for the Philippines’ government, while also warning that any prohibition “will only drive players to illegal operators and result in loss of revenue and jobs”.

“PAGCOR is committed to strengthening regulation and enforcement to ensure that only legitimate and properly monitored operators are allowed to operate,” said Tengco, speaking at a conference hosted by Light & Wonder.

“These illegal sites not only deprive the government of much-needed revenues but also expose Filipino players to numerous risks.”

Among the new regulations in the country is a mandatory decoupling of online gambling platforms to mobile wallets and payment applications, as well as a new accreditation requirement for iGaming service providers.

Although the former has been linked to a dip in revenue for leading operators such as DigiPlus in the third quarter of the year, the changes have been viewed as a vital step to renew trust in the industry.

“The delinking of e-wallets resulted in a short-term decline in activity toward the latter part of the quarter. However, these measures are vital to protect players and ensure secure, transparent transactions,” said Tengco.

Cautious optimism

Looking ahead to 2026, the fact that the bills above were submitted in July and there has been no action as of yet suggests that the momentum behind the push to ban online gaming has lost significant momentum.

However, any rumours of impropriety within the sector risk renewing conversations surrounding its position within the Philippines’ society.

The coming months represent a critical period for PAGCOR as it seeks to stabilise and push for the growth of an industry that has been touted as having the potential to cement itself as Southeast Asia’s second-largest gambling market behind Macau, as revenue is forecast to surpass $7bn in 2025.

Central to this action has been PAGCOR’s commitment to fighting the black market.

In October, PAGCOR signed a memorandum of understanding to divert Php 50m (£639,125) in funding to the National Bureau of Investigation (NBI), the organisation charged with countering illegal gaming.

According to PAGCOR, there are approximately 12,000 illegal online gaming sites in operation, compared to just 77 licensed operators.

While stricter regulations may be viewed as a burden for licensed operators, in the long term, such measures are key to differentiating the legal market from the illegal market and should inspire confidence among consumers.

Keith McDonnell, Director of the KMI Group, previously told iGaming Expert: “What the Philippines needs most now is time to carefully consider how a regulatory framework and workable tax system can provide long-term benefits to the local economy while protecting the most vulnerable.

“Everyone knows an outright ban on [inland gaming operators] would drive things underground, leading to more social, economic and political problems.”

A knee-jerk reaction from any stakeholder within the conversation risks bringing down the sector, and PAGCOR must lead the industry’s future with a cool head to navigate iGaming through a crucial beginning to 2026.”

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Connor McDavid ads fuel uptick in use of BetMGM RG tools

BetMGM has invested in making Canadian NHL phenom Connor McDavid one of its most visible ambassadors, and the iGaming operator unveiled its latest campaign with the Edmonton Oilers captain this week.

The online sports betting and online casino giant launched a new responsible gambling TV ad spot featuring the three-time NHL MVP alongside player-turned-actor Terry Ryan. The commercial is currently airing in the U.S. and Canada, as well as on various digital platforms.

The commercial titled “Mullet Over” was directed and produced by New York-based creative agency CAPE, in collaboration with BetMGM’s creative and responsible gambling teams.

McDavid’s star power reaps reward

BetMGM has worked with former NHL MVP McDavid since before Ontario’s regulated iGaming market opened in April 2022. When he signed on as an ambassador for the MGM Resorts International and Entain joint-venture operator, he was the first active player in a major U.S. professional league to endorse a regulated North American sportsbook.

BetMGM said the new commercial will build on the success of its 2024 responsible gambling ad with McDavid, which the operator said led to a notable increase in use of BetMGM’s responsible gambling tools.

Following that campaign, BetMGM reported a 38% year-over-year increase in Ontario players’ usage of deposit limits and a 55% jump in players in Ontario using stake limits.

Now, it’s hoping a new commercial will continue that impact.

“Filming the ‘Mullet Over’ commercial with Terry was a fun opportunity to combine hockey humour with a meaningful message,” said McDavid of the newly unveiled ad. “It’s important to stay in control, and BetMGM’s tools and resources help customers do just that.”

Ontario-facing ads must be RG-focused

BetMGM also counts the NHL’s ‘Great One’ Wayne Gretzky, New York Yankees legend Derek Jeter and Hollywood stars Jamie Foxx and Jon Hamm among its brand ambassadors.

Whereas BetMGM uses that roster of stars as brand-wide ambassadors across its numerous U.S. markets, even tying their names and likenesses to specific games in some instances, it has to take a narrower approach in Canada’s regulated iGaming province.

The Alcohol and Gaming Commission of Ontario’s (AGCO) regulations stipulate that celebrities including active or retired athletes cannot be used in advertising and marketing “except for the exclusive purpose of advocating for responsible gambling practices.” In August 2023, the AGCO announced it would ban the use of athletes in broader online gaming advertising and marketing in Ontario, a change that came into effect in February 2024.

Ontario also has a requirement that operators must spend a certain percentage of their annual gross gaming revenue on RG-specific messaging.

So, BetMGM’s stars, as well as other gaming ambassadors like BetVictor’s former Toronto Raptor Tracy McGrady, Betway’s French soccer icon Thierry Henry and Bet99‘s Canadian UFC legend Georges St-Pierre are used purely to talk about the responsible gambling tools offered by the companies they represent.

“Our new campaign with Connor and Terry builds upon our approach to deliver an entertaining and memorable responsible gambling message,” said BetMGM Director of Responsible Gambling Richard Taylor. “We’re committed to finding new and creative ways to reach customers and encourage them to ‘mull it over’ before they place a bet.”

Hockey hook-up could work well in Alberta

Meanwhile, as Alberta continues to inch slowly towards launching its own commercial iGaming market, BetMGM leaders know that the brand’s association with McDavid and Gretzky may stand it in good stead in the western province.

BetMGM VP of Canada Scott Woodgate told Canadian Gaming Business in mid-2024 that the company believes Alberta can become “a key omnichannel market” for the operator.

We’ve obviously gotten into business with a couple of guys from Alberta, so we see the appeal,” he added at the time. “It’s a dynamic province, it’s a good-sized market, there are strong incomes, a young and growing population, it’s a great hockey market. It checks a lot of boxes.”

BetMGM CEO Adam Greenblatt added a few months ago that, with the company one of the top operators by market share in Ontario, it is primed for success in Alberta.

“Alberta is an area that should play to BetMGM’s strength given its operations in Ontario,” he noted on an April 2025 earnings call. “That should be a province where BetMGM really does flex its muscles, given the strength of our business in Ontario. So we’re really excited, really optimistic for Alberta.”

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NJ lawmakers hear both sides on the issue of banning in-game props

Lawmakers in New Jersey heard from both sides of the argument regarding a proposed bill to ban in-game prop betting, or micro-betting, in the state. However, since the hearing was only informational, so far, the Assembly has not taken any action on the matter.

Bill would ban in-game wagers on events like baseball pitches

Rep. Dan Hutchinson kicked off the hearing by explaining his measure, A 5971, which he introduced last month amidst a torrent of controversies related to match fixing in professional and collegiate sports. The bill would eliminate the bets and impose a fine of between $500 and $1,000 on each wager taken. There is a companion bill in the New Jersey Senate with the same text, S

Hutchinson recalled some experiences he shared interacting with those who have dealt with problem gambling as well as voiced his own thoughts as to why he thinks the matter is an issue worth legislating.

“As I watched the Eagles play yesterday, I was shocked to find that gambling ads were bak..

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NCAA’s Baker believes sports event contracts feel ‘catastrophic’

NCAA President Charlie Baker has been outspoken about the impact of legal sports betting on its student-athletes, but the organization is also having to consider another vertical.

Baker sat down with Yahoo! Sports to discuss the legal sports betting industry and how the NCAA is responding to recent gambling infractions across sports and the steps the organization is taking to protect its student-athletes. Baker also discussed the growing popularity of prediction markets and how the NCAA perceives the emerging platforms.

Easy access to online wagering changed the game

Since the overturning of PASPA in 2018, the NCAA has worked to develop and implement a framework that protects student-athletes from gambling-related harm and ensures the integrity of competition. However, the rapid pace of growth and the accessibility of online sports wagering impacts how the NCAA sets a standard related to regulated gambling.

“I don’t think anybody was anticipating that it [legal sports betting] woul..

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NCAA gambling probe extends to former San Francisco student-athlete

The NCAA investigation into sports betting violations at Fresno State led to the discovery of similar infractions at another California university.

Former University of San Francisco men’s basketball guard Marcus Williams was found to have violated the NCAA’s rules related to sports betting by knowingly providing information to a third-party for gambling-related purposes. Williams shared information with former Fresno State men’s basketball player Mykell Robinson, who was dismissed from the university and ruled permanently ineligible by the NCAA for manipulating his performances during games to win bets.

The NCAA initiated an investigation into Williams after their probe into Robinson revealed communication between the two players. The communication included Williams providing information for Robinson to wager on him.

Robinson leveraged daily fantasy sports accounts to place bets on Williams. The NCAA did not disclose which gaming platform Robinson used to place the wagers. NCAA ga..

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NY judge doesn’t buy argument that DraftKings promos were misleading

Notch another one in the win column for DraftKings, as Southern District of New York Judge Denise Cote dismissed a class action lawsuit against the sportsbook over its promotions.

After prevailing in a similar lawsuit in the Eastern District of New York in July, Cote’s ruling drew many of the same conclusions as the judge drew in that case. Both cases observed that there were clear opportunities for the plaintiffs to read the terms of service surrounding the $1,000 deposit bonus and the “No Sweat” bet, so they cannot argue that DraftKings was misleading in how these offers were presented.

Plaintiffs didn’t have a specific DK ad in mind

Cote also pushed back at the suit because the plaintiffs could not point to the exact advertisement the plaintiffs had seen. The plaintiffs tried to argue that didn’t makker because all of the ads are relatively the same, but Cote said a specific example is necessary in order to state a claim.

She went into more detail on other elements of the case, ..

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Finland gambling bill delayed due to lack of agency staff

The first Parliament reading of Finland’s gambling bill shed light on the reasons for its implementation being delayed, as Licensing and Supervision Agency doesn’t have enough staff to hit the timeline.

A report from the Administrative Committee called for a six-month postponement to the implementation of the country’s commercial licensing gambling market until 1 July 2027.

Earlier this week, representatives in a Parliament plenary session debated the delay, as the market was initially scheduled to launch on 1 January 2027. The debate saw Tuomas Kettunen of the Centre Party question Sinuhe Wallinheimo of the Coalition Party if the gambling market’s implementation was delayed as a result of election politicking.

The delay aligns the introduction with the upcoming election, which is set to take place in 2027 and could lead to the country’s gambling bill being a topic of political conjecture during the build up.

“Representative Wallinheimo, was this finally a matter of the fact that the postponement of the Gambling Act was a purely political consideration on the part of the Coalition Party?” stated Kettunen.

“Was it a matter of political consideration? Namely, nowhere has it been mentioned that the gambling reform could come into force as the government originally proposed, i.e. at the beginning of 2027.

“In other words, was this a matter of some kind of election politicking, that the Coalition Party did not want this advertising rally to start on 1 January 2027, because the parliamentary elections will be held on 18 April 2027?”

Kettunen queried that the Coalition Party is worried that its election advertising would be impacted by the incoming advertising from the gambling sector following the licensed market’s launch and thus wanted its implementation delayed until after the elections.

“This advertising rally will only start a couple of months after the parliamentary elections. What was the Coalition Party worried about in this matter?

“Was it that the Coalition Party would not receive its election advertisements, when so many advertisements from gaming companies are appearing in the newspapers? Or was it that there was a bit of concern that if these disadvantages start to occur, what kind of impact will this have on the election result of the National Coalition Party?”

Agency responsibilities

Wallinheimo hit back and emphasised that the delay was due to there not being enough staff ready to meet the demands of the Licensing and Supervision Agency’s responsibilities as regulator of the commercially licensed market, in addition to the fact that the agency itself is still in its infancy.

Wallinheimo stated: “The permits for the first year, 2026, are indeed taken in by the National Police Board, and from the beginning of 2027 this would have then gone under the supervision of the licensing and supervision authorities. Such an organisation, Representative Kettunen, does not exist.

“We have no information about what type of people will be working there in the future, and on the same day they would have been given this huge task. It is simply not possible. That is why, first of all, since the Licensing and Supervision Authority does not exist, we are now wondering whether there are perhaps such people in the police administration who could transfer there, but even there are only a handful of people.

“The Licensing and Supervision Authority needs dozens of people to carry out this supervision. Such an organisation, Representative Kettunen, does not exist before 2027. That is why it made sense to take a six-month break here, so that people can genuinely get to work there and they know what they are supervising, after which they can then do their job properly.”

Stakeholders interested in the Finnish gambling market will be hopeful that the matter of the gambling agency can be resolved quickly, although it is clear now that a delay to its implementation is on the horizon.

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Poland to classify loot boxes as gambling 

A draft proposal has been submitted to the Sejm of Poland to add new “games incentives and virtual goods” as new criteria governed by the Gambling Act 2009.

Endorsed by the Poland 2050 MPs, the mandate specifically targets loot boxes to be recognised and classified as gambling criteria, with Poland developing unique safeguards for consumers of all ages.

Should Poland recognise loot box as gambling, the proposals will apply significant changes to the Gambling Act to bring clarity to legal criteria, provisions, consumer protections and licensing of games.

The changes state that “creators of games with loot box mechanics will need to obtain special permission and introduce age verification to ensure in-game purchases are compliant.”

No manipulation or random elements

Ministers backing the proposal seek to ensure Polish children play in safe and fair environments, protected from developing gaming or pathological disorders.

“The introduction of new definitions for games of chance, including games for virtual goods, will make it possible to classify new types of games not previously covered by the Gambling Act,” the draft explains.

“Loot boxes appearing in computer games, purchased by users for money, will be recognised as containing random elements for which players cannot foresee the outcome or value of the reward.”

In its justification, the document highlights the vulnerability of young audiences to manipulative design features:

“Young people constitute a significant part of computer game audiences and are more susceptible to impulsive behaviour and the risk of developing addiction. Mechanisms promoting the purchase of loot boxes may encourage compulsive habits of a gambling nature.”

Notably, Poland 2050 MPs have called on the Ministry of Finance to design specific licensing standards for game publishers. The proposal states that:

“Creators of games with loot box mechanics will be required to obtain special permission and implement age-verification systems to ensure that in-game purchases comply with statutory requirements.”

Tax and licensing

It further recommends that the Ministry consider taxation measures for loot box revenues, noting that “the regulation should define the fee for obtaining and maintaining a licence, taking into account the supplementary nature of such activities in relation to the main game.”

A key consideration within the draft concerns loot boxes and in-game purchases made with virtual (internal) currency accumulated through gameplay. The text clarifies that “where the internal currency may be obtained, exchanged, or monetised, such transactions should be treated as equivalent to financial stakes under the Gambling Act.”

If implemented, the reform would formally add “games for virtual goods” to Poland’s catalogue of gambling products, granting licences valid for two years and obliging operators to disclose the randomness of rewards, enforce age restrictions, and maintain responsible gaming procedures.

The Sejm has been urged to advance the proposal, with public consultations scheduled to begin on 4 January 2026.

Should the measure pass, Poland would become the third EU nation to classify loot boxes as gambling, following Belgium and the Netherlands. Yet the depth of Poland’s draft addressing taxation, licensing, and in-game transactions makes it one of the most comprehensive European approaches to date.

The reforms could establish Poland as a test case for balancing innovation in gaming with responsible gambling regulation, setting a new benchmark in Europe’s evolving debate over how digital economies continue to blur the line between play and chance.

Justyna Grusza-Głębicka

Local View

Speaking to iGaming Expert, Polish legal expert Justyna Grusza-Głębicka described loot boxes as one of the most complex regulatory questions facing lawmakers.

“One of the hot topic in 2025 was loot boxes. Are they gambling or not? The answer remains unclear,” she said. “Legislators have discussed the issue and referenced examples from Spain, the Netherlands and Belgium, yet no hard regulatory measures have been adopted. Meanwhile, the gaming industry continues to use randomised reward mechanics which — from both psychological and regulatory perspectives — function much like a casino. The most vulnerable users are children.”

Grusza-Głębicka noted that Poland’s new proposal could “bring long-awaited clarity” to a grey area that continues to divide gaming and gambling regulators across Europe, however come 2026 “video games developers should be prepared for change”

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KSA: Dutch gambling oversight improved by Control Databases 

Kansspelautoriteit (KSA), the Gambling Authority of the Netherlands, has enhanced its stance on the technical and data-quality standards of operators’ Control Databases (CDBs) of Dutch gambling.

The CDB is recognised as the principal data monitoring system that enables the KSA to oversee all licensed online gambling activity in real time.

Under the Remote Gambling Act (KOA), every permit holder must record game data in a near-real-time environment, stored in a separate CDB that the KSA and other authorities can directly access. The database is designed to guarantee that gambling in the Netherlands is conducted in a responsible, reliable and verifiable manner.

CDB orders
Operators are obliged to maintain a CDB that is continuously available, accurately configured, and promptly updated following any operational or technical change. Licensees must prevent disruptions, notify the KSA of any planned maintenance or infrastructure renewal, and ensure that any modification to game offerings, systems or data mapping is immediately reflected in the CDB.

The database must also be kept compliant with the latest technical specifications and data-model updates, the most recent being version 1.11, which came into force in December 2024 in line with the Responsible Gaming Policy 2024. Any failure to implement or maintain these updates constitutes a breach of Dutch regulations and can result in enforcement action or licence review.

KSA warns of shortcomings
In its latest inspection round, the KSA carried out a CDB data-quality review in July 2025, identifying several shortcomings among licensed operators. A follow-up audit in October confirmed that all providers had since corrected these issues, leading to measurable improvements in the accuracy and reliability of submitted data.

The regulator noted that most licence holders had made “significant progress” in aligning with the new standards, though “a few providers” still required additional attention. The KSA stressed that any detected errors must be rectified immediately — and that historical data must also be updated and improved to ensure continuous traceability.

CDB drives 2026 changes
The KSA warning arrives as the Netherlands prepares for further regulatory decisions by the incoming government changes, as the Remote Gambling Act (KOA) is due to be overhauled in 2026.

The CDB infrastructure will play a key role in that review — particularly in areas related to licence renewal, responsible-gaming interactions and customer-risk monitoring.

Reaffirming its stance, the KSA stated that robust, verifiable data remains the “foundation of effective supervision” and a prerequisite for operators seeking to maintain good standing in the Dutch market.

As the regulator’s technology and data teams continue to expand, control databases are likely to become the next frontier in the Netherlands’ shift toward a stricter, data-driven regulatory model.

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Forza Italia motion seeks to reset taxes on slots 

A new motion introduced to the Senate Budget Committee has reopened discussion over the governance and taxation of slot machines across Italy’s provinces and municipalities.

Submitted by Senator Claudio Lotito of Forza Italia during debates on the 2026 Budget Law, the proposal calls for a pilot taxation scheme of slot machines (AWPs) — a move that could reshape how Italy taxes and regulates one of largest gambling verticals.

The motion is submitted as a “consideration for the Budget 2026”, as lawmakers reassess how the land-based sector aligns with the wider gambling reorganisation that is currently being undertaken by the Meloni government.

Lotito proposes that tax rates be linked to player expenditure rather than gross revenue, with the aim of rebalancing the slot sector’s fiscal model and restoring competitiveness against both other regulated products and the illegal market, which continues to divert play away from licensed venues.

The plan also includes measures to strengthen player protection. Slot machines would be required to deliver a minimum 70% payout ratio, while the maximum prize limit would increase from €100 to €200.

Additional provisions introduce stricter responsible-play requirements, including technical safeguards to prevent underage access and limits on session duration, reinforced by on-screen warning messages – in-line with approved measures of the government reorganisation decree.

Lotito’s proposal replaces an earlier withdrawn amendment but lands at a critical moment for the sector. According to Budget Bill projections, slot wagers have declined from €24 billion in 2018 to an estimated €15.4 billion in 2026, while the tax rate has risen from 19.1% to 24% — a combination that has cost the state roughly €900 million in lost fiscal yield.

The initiative sits within the broader 2026 restructuring of Italy’s land-based gambling system, overseen by the Customs and Monopolies Agency (ADM). From January 2026, all slot and VLT authorisations will become fully digital, with QR-code labels replacing paper documentation under the agency’s traceability reforms.

The ADM confirmed that the digitisation trial had been completed “without reports of critical issues” and that penalties will apply for machines found without legible or intact QR codes.

Looking ahead, the Meloni government will proceed with phase two of Italy’s gambling reorganisation in 2026, modernising laws and compliance for land-based gaming venues and suppliers.

Key reforms will centre on the creation of a Unified Concession Model — a single national framework for retail gaming — introducing standard operating rules across provinces and municipalities, enhancing digital traceability, and strengthening player protection.

The ADM is also preparing to launch public tenders for new retail gaming concessions in late 2026, covering both betting shops and gaming halls, as part of the state’s long-term plan to secure fiscal stability and ensure full compliance with EU procurement standards.

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