The Philippine gaming industry posted gross gaming revenue of PHP396.14 billion (US$6.61 billion) in 2025. It was a solid 6.4% increase from the previous year, according to data released Thursday by the Philippine Amusement and Gaming Corporation (PAGCOR).
The growth was largely fueled by the rapid expansion of the country’s online casinos, which compensated for declining revenues from traditional casino locations and offerings.
Online Gaming is the Top Contributor
In its annual report, PAGCOR disclosed that the electronic and online segment generated PHP201.12 billion in 2025. This was an impressive 30% jump from the PHP154.66 billion in 2024.
The category includes e-bingo, e-games, bingo grantees, and both onsite and offsite poker operations. Interestingly, for the first time, the segment has outperformed licensed casinos as the industry’s biggest revenue source. They accounted for 50.8% of the total reported GGR.
“Online gambling is no longer a supplementary segment but has now become the leading driver of overall GGR growth,” stated Alejandro H. Tengco, PAGCOR chairman and chief executive officer, in a prepared statement.
Tengco said the latest results correspond with the rapid evolution of the local gaming industry and the growing significance of digital platforms and channels.
Land-Based Casinos Report Decline
While online gaming surged, revenues from physical casino operations declined during the same period. In its press, the regulator said licensed casinos earned PHP182.50 billion in 2025, which is down 9.6% from the previous year.
In the meantime, the state-run Casino Filipino venues accumulated around PHP12.52 billion. Unfortunately, it was a sharper 21% decline from 2024 levels. The drop highlights the shifting preferences of players, with more users now choosing to play on digital casino platforms.
Regulatory Reforms and Payment Controls
The strong growth in online gaming came despite stricter regulations introduced by the country’s government in the previous year.
PAGCOR also noted that the sector remained resilient even after reforms targeting digital gaming platforms and the implementation of stricter payment rules in the third quarter.
In August, members of the Philippine Senate began discussing stronger oversight of the online gambling sector.
By October, PAGCOR reported a sharp decline in its income, which can be attributed to the delinking of online gambling platforms from electronic wallets (e-wallets) and the slight decrease in new player sign-ups.
According to Tengco, the payment reforms were designed to improve transaction traceability, strengthen player protection, and increase public confidence in the regulated market.
“Our objective is not simply to grow revenues, but to ensure that growth is sustainable, transparent, and compliant because of a stronger regulatory environment that supports the long-term stability of the gaming industry,” he said.
Middle East Tensions Add Pressure
Despite strong annual revenue growth, PAGCOR warned that the industry is facing fresh headwinds from ongoing geopolitical tensions in the Middle East, which have pushed up global fuel prices and begun to affect business activity.
While speaking at the 34th Manila After Dark, an industry event hosted by Inside Asian Gaming on April 14, Tengco said the impact can already be seen across global gaming markets.
“This is not a good time for everyone. Gaming jurisdictions globally are feeling the impact of the oil crisis, and even more progressive countries like Singapore, Macau, and the United States are not spared.”
He added that rising fuel costs are affecting mobility, operations, and broader industry activity, placing additional strain on stakeholders in the Philippine gaming sector.
Still, Tengco emphasised the importance of continued cooperation among regulators, operators, suppliers, and investors. In his opinion, the industry should stick together, resume the discussion and support each other.
Privatisation Could Be a Game-Changer
Tengco also spoke about the long-discussed proposal to separate PAGCOR’s regulatory and commercial functions, saying the Governance Commission for GOCCs is still reviewing the plan.
He explained that the regulator is awaiting a decision from the GCG. But in his words, if the agency gets the nod to privatise, it could be a game-changer. If passed, the proposal could significantly reshape the structure of the Philippine gaming industry by separating PAGCOR’s role as both operator and regulator.
Other PAGCOR Developments
In a separate recent development, PAGCOR also highlighted its commitment to workplace inclusion and leadership recognition through its Women’s Month culminating event, “DAKILA: A Celebration of Fine Women,” which was held at its Pasay City corporate office at the end of last month.
The agency honoured four prominent women leaders with the Dakilang Babaylan Award and recognised three long-serving employees through the Dakilang Juana Award, celebrating decades of service and leadership. PAGCOR Chairman and CEO Alejandro H. Tengco said the initiative reflects the organisation’s continued focus on empowerment and inclusivity.
The event forms part of PAGCOR’s broader efforts to strengthen its institutional culture while navigating ongoing regulatory and market changes in the gaming sector.
