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The Philippine gaming sector produced gross gaming revenue of PHP396.14 billion (US$6.61 billion) in 2025, a 6.4% increase year-on-year, according to data published by the Philippine Amusement and Gaming Corporation (PAGCOR). For the first time, the electronic and online gaming segment overtook licensed casinos as the largest GGR contributor in the country.
Online and Electronic Gaming Surpass Land-Based
The electronic and online segment — covering e-bingo, e-games, bingo grantees, and onsite and offsite poker — generated PHP201.12 billion in 2025, up 30.0% from PHP154.66 billion in 2024. The segment accounted for 50.77% of total industry GGR.
Licensed commercial casinos went the other way, falling 9.6% to PHP182.50 billion, from PHP201.84 billion the year prior. PAGCOR-operated Casino Filipino venues declined further still, down nearly 21% to PHP12.52 billion.
“The E-Games and online gaming segment has overtaken licensed casinos as the largest GGR contributor,” said Alejandro Tengco, chairman and chief executive of PAGCOR. “Online gaming is no longer a supplementary segment but has now become the leading driver of overall GGR growth.”
The result closes out a year defined by a sharp structural shift in the Philippines market, with digital growth strong enough to offset a sustained decline in land-based revenues.
Q3 Disruption From E-Wallet Reforms
The full-year result came despite a meaningful Q3 slowdown. GGR for the third quarter reached PHP94.51 billion, a marginal 0.1% decline year-on-year and a 14.6% sequential drop from the PHP110.63 billion record set in Q2. PAGCOR attributed the dip to the government’s decision to delink electronic wallets from online gambling platforms — a reform introduced in August 2025 — which disrupted player payment channels and caused a temporary contraction in transaction volumes.
PAGCOR also banned the use of credit cards and cryptocurrencies for gambling transactions during the period, citing concerns about over-borrowing and impulsive behaviour.
“These reforms inevitably have short-term impacts,” Tengco said. “We cannot build a modern digital gaming ecosystem on foundations that do not fully meet global integrity and compliance standards.”
The regulator framed the Q3 softness as an anticipated consequence of tighter compliance, not a structural reversal. Revenue momentum recovered through Q4 as operators and players adapted to revised payment systems.
Regulatory Context and AML Pressure
The 2025 results land at a complicated moment for PAGCOR. The AML tightening already weighing on the regulator — flagged by analysts in February as a headwind for live casino suppliers operating in the market — reflects broader pressure on the Philippines to align with international compliance standards. PAGCOR has introduced new consumer protection requirements, including mandatory self-exclusion tools, betting limits, and a partnership with the Seagulls Flock Organisation to establish a 24/7 problem gambling helpline.
Legislative pressure has also mounted. Members of the Philippine Senate debated stricter online gambling oversight through H2 2025, with some proposals calling for outright bans on certain forms of digital gaming. PAGCOR has maintained a position in favour of tighter regulation over prohibition, arguing that compliance-led growth offers a more durable path to market stability than restriction.
In a separate move to manage conflicts of interest, PAGCOR is advancing a plan to sell off 45 of its operated gaming halls, expected to yield PHP50 billion and fully separate the regulator’s operational and oversight functions by 2026.
Market Position and Forward Outlook
The Philippines is now the second-largest gaming market in Asia by GGR, trailing only Macau. The 2025 total of $6.61 billion falls short of the $7 billion target Tengco had outlined earlier in the year — PAGCOR had projected a 17% increase on 2024’s PHP410.5 billion, which would have put the market closer to PHP480 billion — but the structural shift toward digital is now well established.
Thailand remains the most significant competitive threat on the horizon. The Thai government’s ongoing review of an Entertainment Complex Bill, which could legalise land-based gambling operations, has the potential to redirect high-spending tourists and regional investment away from the Philippines. PAGCOR’s ability to retain market share will depend in part on how quickly it can stabilise its online regulatory framework without deterring licensed operator activity.
The regulator has set a target of crossing PHP1 trillion in GGR by 2027 — a figure that would require sustained double-digit compound growth from the current base. With AML compliance requirements tightening and land-based revenues in structural decline, online gaming will need to sustain its current growth trajectory to keep that target in range. Tengco has committed to an additional reduction in operator remittance rates — from 35% to 30% — introduced in January 2025 to support digital platform expansion, a signal that PAGCOR intends to keep the online environment commercially viable as oversight tightens.
Source: PAGCOR
