Rising fuel costs tied to geopolitical tensions in the Middle East are beginning to weigh on the Philippine gaming sector, according to Philippine Amusement and Gaming Corp. chairman and chief executive officer Alejandro H. Tengco.
Speaking at the 34th Manila After Dark event hosted by Inside Asian Gaming, Tengco said elevated oil prices are already dampening business activity and mobility across key gaming markets, though he stopped short of providing specific figures.
“This is not a good time for everyone,” Tengco said, noting that the strain extends beyond the Philippines. He pointed out that major gaming hubs, including Singapore, Macau, and the United States, are also grappling with similar cost pressures.
Industry-wide, the impact is being felt across the value chain—from operators to suppliers and service providers—as higher fuel prices drive up transportation and operational expenses. Tengco warned that these rising costs could gradually erode margins and slow expansion plans if sustained.
Despite the headwinds, Tengco underscored the importance of maintaining strong industry ties. Events such as Manila After Dark, he said, play a crucial role in fostering collaboration and sustaining business relationships during challenging periods.
“Being together like this makes us forget, even for a while, the challenges we face,” he said, emphasizing the need for continued dialogue and mutual support among stakeholders.
Tengco said PAGCOR remains prepared to adapt to shifting market conditions while upholding its commitment to responsible gaming.
He added that the proposed separation of PAGCOR’s regulatory and commercial functions is still under review by the Governance Commission for GOCCs, with potential privatization seen as a transformative step for the industry if approved.
