PAGCOR urges regulators to act amid global uncertainty

(AsiaGameHub) –   The Asian gaming industry is facing significant pressure due to the ripple effects of Middle Eastern conflicts, prompting PAGCOR Chairman Alejandro Tengco to call for increased cooperation among regulatory bodies.

With geopolitical instability driving up oil costs, the Philippine Amusement and Gaming Corporation (PAGCOR) head cautioned that these difficulties are impacting various regions, including Macau, Singapore, and the United States. 

During the Manila After Dark event, organized by Inside Asian Gaming in the Philippines, Tengco noted that the international gaming market is currently grappling with the consequences of the oil crisis.

“It is vital for us to unite, maintain open dialogues, and provide mutual industry support,” he remarked.

“These are challenging times for all,” he stated. “Gaming sectors across the globe are being hit by the oil crisis, and even advanced markets like the US, Macau, and Singapore are feeling the strain.”

He further mentioned that PAGCOR is adapting to a more difficult economic environment to maintain stability while keeping responsible gaming as a primary focus. 

“PAGCOR will make the necessary adjustments. We must stay current with global trends and ensure that player protection remains our top priority.”

Global oil supplies have faced major interruptions since the conflict began in February, causing prices to jump from roughly $70 to as high as $118 per barrel.

As of now, oil is trading at approximately $97 per barrel.

This ongoing volatility is a major point of concern for the international gambling sector.

Specifically, visitor arrivals—particularly in Southeast Asia—are expected to decline due to flight path changes and more expensive airfare resulting from high fuel prices.

As inflation affects household budgets worldwide, consumers are likely to reduce spending on leisure activities like gambling to cover essential costs.

Furthermore, increased supply chain expenses are driving up the production costs of gaming hardware, adding to the financial pressure on casino operators.

While the Department of Tourism in the Philippines reported a 10% year-on-year rise in visitors to 1.82 million during the first quarter of 2026, the full consequences of the geopolitical situation are expected to manifest in the coming months.

Operators remain cautious

Regulators are not the only ones preparing for a downturn in the Asian market; Genting Singapore has also informed its investors that it is keeping a close eye on the situation. 

In a statement to shareholders, the group noted: “Management is currently assessing various direct and indirect consequences, such as potential changes in global travel patterns, operating costs, and the general economic outlook. 

“Because the situation is fluid and unpredictable, it is too early to determine the exact impact on the Group. 

“We will continue to track these events and react as needed. In the long term, our diverse resort portfolio, solid financial standing, and Singapore’s reputation as a secure, regulated hub will help us navigate these uncertainties.” 

Elsewhere, the Macau government has indicated it may subsidize travel from Guangzhou Baiyun International Airport to encourage more visitors.

While travel to Hong Kong—which has a similar subsidy program—has been affected by the conflict, flight schedules to Guangzhou have remained mostly stable.

Regarding the new initiatives, Macau’s Secretary for Economy and Finance, Tai Kin Ip, stated: “The MSAR Government is committed to expanding its tourism offerings, hosting major events, upgrading infrastructure, and intensifying marketing efforts.”

With the economic repercussions of the war expected to persist for years, Tengco reiterated that PAGCOR is ready to evolve its strategies to remain resilient in a changing global landscape.