Rising Oil Costs Squeeze Gaming Industry, Warns Pagcor’s Alejandro Tengco

(AsiaGameHub) –   The gaming industry is facing increased pressure due to rising energy expenses. Alejandro Tengco, head of Pagcor, observed that markets in Asia and the United States are already experiencing the effects, with the Philippines also grappling with higher domestic fuel prices.

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Good to Know

• Pagcor indicated that the global gaming sector is being impacted by the oil crisis.
• Alejandro Tengco identified the US, Macau, and Singapore as affected regions.
• A decision is still pending regarding the proposal to separate Pagcor’s operating and regulatory responsibilities.

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Tengco Notes Global Gaming Impact from Oil Crisis

Alejandro Tengco stated that the international gaming industry is under strain from an oil crisis linked to Middle Eastern conflicts. During an industry gathering in Manila organized by Inside Asian Gaming, the Pagcor chairman and CEO noted that regions including Macau, Singapore, and the US are all feeling the repercussions.

Approximately one-fifth of the world’s oil and gas comes from the Gulf. Since military actions involving the US, Israel, and Iran began on February 28, energy supplies and maritime commerce have faced disruptions. This is significant for the Philippines, which depends heavily on Middle Eastern fossil fuel imports, leading government agencies to implement energy-conservation measures.

Fuel costs have surged, with gasoline and diesel prices in the Philippines more than doubling since the start of the conflict. The national government recently announced the suspension of certain fuel taxes to help consumers. Furthermore, analysts have pointed out the increasing pressure on Macau’s gaming industry as energy expenses rise.

In a Wednesday statement following the event, Pagcor quoted Tengco:

“This is a difficult period for everyone.”

He also advocated for stronger industry cooperation amidst shifting conditions. “It is vital that we unite, maintain these dialogues, and provide mutual support within the sector,” Mr. Tengco remarked.

He added that Pagcor would adapt as necessary while prioritizing player safety. He stated: “Pagcor will make the required adjustments. We must stay current and ensure that our focus remains on responsible gaming.”

The session also revisited the long-standing debate over Pagcor’s organizational structure. Tengco confirmed that the Governance Commission for Government Owned and Controlled Corporations (GCG) continues to evaluate the plan to decouple Pagcor’s commercial and regulatory arms. This strategy involves Pagcor retaining its regulatory role while privatizing the state-run Casino Filipino chain.

Tengco commented: “There is significant demand for this separation, and we are awaiting the GCG’s verdict,” he said. “Should privatization be approved, it will represent a major shift for the industry.”