Tengco aims for online gaming law by 2028 as Century reveals licensing vulnerabilities

PAGCOR proposed that the online gaming market be established by law before the end of the term of Chief Executive Officer Alejandro Tengco on 30 June 2028. Simultaneously, the annual report of Century Entertainment International Holdings (HKEX: 959) details that in "mid-April 2026" its Filipino partner lost the GSA and GCP accreditations, exposing how quickly market conditions can change.

By Miguel Sandoval, Regulatory Correspondent.

Tengco wants an online gaming law before his term ends — focus on stability

Alejandro Tengco, President and CEO of the Philippine Amusement and Gaming Corporation, stated in an interview with Inside Asian Gaming published on 29 September that he wants a comprehensive online gaming law to be enacted before the end of his term on 30 June 2028. Tengco has presented the law as the instrument that will make the market less vulnerable to reversible regulatory changes: "There is a structure, there is a law, so it cannot be easily repealed," he said in the interview.

Tengco had already indicated in May to iGaming Business that a comprehensive law was one of three priorities alongside separating the regulatory and operational functions of PAGCOR and constructing a new headquarters. Until that legal framework is in place, the market operates under PAGCOR's internal rules, which in 2026 tightened advertising and rebate limits and established a minimum guaranteed quota that, according to Century's report, took effect on 1 July 2026.

What Congress proposes and what initiatives are active in Manila

There is still no comprehensive law approved by the Filipino Congress. In 2026, there are initiatives in both chambers: bills to create a detailed regulatory framework and others seeking to ban the product. BusinessMirror reported in March that the Senate and PAGCOR were working on a project with controls on payment channels and marketing restrictions. Since 2025, bills have been recorded that include total prohibitions; S&P Global has cited these proposals as a risk for leading operators like DigiPlus.

Two recent bills aimed at advertising are House Bill 10982, introduced by Representative Karen Hope Garcia on 26 August, and Senate Bill 2347, sponsored by Senator Francis Escudero; neither had been scheduled for committee hearings at the time of the public reports cited by Yogonet. PAGCOR's formal position, established in July 2025, is that it will follow any regulation approved by Congress and signed by the President.

The Century case: timeline and key points

Century Entertainment began online gaming operations in the Philippines in July 2025 through Konphil Technology, a joint venture with 51% ownership by Century and 49% by its local partner, described in the annual report as the "Strategic Partner." In its communication dated 25 June, the company identified that partner as World Platinum Technologies (WPT), which it described as a "PAGCOR-accredited provider" and with which Konphil signed a deployment agreement on 2 April for 27 games in seven venues.

The annual report published on 25 September states that "in mid-April 2026, the Group was informed by the Strategic Partner that its GSA and GCP licenses had been cancelled." PAGCOR confirmed to Inside Asian Gaming in July that WPT's GSA accreditation was cancelled in April, without publicly offering a reason.

Century outlines continuity measures: it claims that Konphil had appointed a PAGCOR-accredited distributor as its exclusive distributor before 26 March — the date on which a new requirement came into effect mandating foreign suppliers to hold GCP accreditation or operate through one — and that in early April the partner appointed another accredited GSA to operate Konphil's platforms. The Group's internal legal advice holds that these agreements are valid and that, "as a matter of Philippine gaming law," the cancellation of the Strategic Partner's licenses does not affect the operations of Phase IV of Konphil.

Under the Phase IV model, Konphil retains the net revenues of dedicated virtual rooms and pays the partner a 15% commission termed the "Runner's Fee"; the partner or designated party remains "the surface operator responsible for compliance with PAGCOR" and "the banker who assumes all gaming risk." The final agreement was still pending at the close of the fiscal year.

Financial impact and audit uncertainties at Century

For the fiscal year ending 31 March, Century reported revenues of HK$30.3 million (approx. $3.9 million) and a profit of HK$8.6 million (approx. $1.1 million). The report also noted that unaudited sales from Phase IV were HK$53.9 million (approx. $6.9 million) in April-June. As of 31 March, the group had net liabilities of HK$116.4 million (approx. $14.9 million), and its largest customer accounted for 78.26% of revenues.

The auditor, Crowe (HK), warned of a material uncertainty regarding the company's ability to continue as a going concern. Century’s shares have remained suspended since June 2025; the Hong Kong Stock Exchange requested on 9 July that the company demonstrate adequate internal controls before trading can be resumed.

Accreditations as regulatory leverage and Tengco's argumentation

The Century case illustrates the market's dependence on PAGCOR accreditations: the loss or reconfiguration of a GSA or GCP can immediately alter supply agreements and trading chains. Tengco argues that statutory law would establish rules that could not be modified simply by internal circulars and would provide, in his view, greater stability to the sector.

Tengco also recognizes that a law would make the regulator as rigid as the operators: any binding regime will define fees, marketing limits, and who can supply games. With about 21 months remaining in his term, according to the countdown to June 2028, parliamentary negotiation will require reaching terms that allow the survival of the legal market without opening the door to repealing such regulation at the next change of administration.

What operators and suppliers should watch for

Operators and B2B suppliers should review the strength of their accreditation chains and prepare contractual and technical alternatives that comply with PAGCOR's policy on direct accreditations. For industry information and reviewable regulatory changes, it is advisable to consult specialized coverage on regulation and the b2b sections in our publication.

"There is a structure, there is a law, so it cannot be easily repealed," said Alejandro Tengco regarding his aim to enact an online gaming law before 2028. — Alejandro Tengco, President and CEO, Philippine Amusement and Gaming Corporation.

"The cancellation of the Strategic Partner's licenses does not affect the operations of Phase IV, as a matter of Philippine gaming law," according to Century's legal advisors. — Century Entertainment International Holdings