Pacific Online Systems Corporation has formally pulled out of its contracts involving e-lottery and horse racing betting services in the Philippines in early 2026. This move sees the company terminating its agreements with the Philippine Charity Sweepstakes Office for electronic lottery operations and the Philippine Racing Commission for horse racing betting. The exits come in response to stricter government policies aimed at increasing oversight and regulation within the country's gaming and betting sectors. Pacific Online cited the changing regulatory landscape and policy uncertainties as primary factors leading to its decision to discontinue these services. The policy tightening reflects the Philippine government's broader effort to control and regulate gambling activities, ensuring compliance and responsible gaming amid evolving market dynamics. The exit marks a significant shift for Pacific Online, which had been involved in supporting these government-affiliated betting operations prior to the recent policy changes.