The Philippine gaming market hit a turning point in the first half of 2025, with online gambling revenues outpacing those from traditional casinos for the first time. Data from the Philippine Amusement and Gaming Corporation (PAGCOR) shows the eGames sector—which includes e-bingo and bingo operators—generated ₱114.83 billion between January and June. That figure represents roughly 53.5% of the country’s total gross gaming revenue (GGR) and marks an 82.6% year-on-year increase.
It also marks the first time the sector surpassed the US$2 billion mark within a six-month period.
“PAGCOR recognizes the earning potential of the e-games sector, but as the country’s gaming regulator, our foremost responsibility is to ensure that growth comes with accountability,” said PAGCOR Chairman and CEO Alejandro Tengco via the Philippine News Agency.
Casino Revenues Slide as Players Shift Online
Land-based casinos, including the major integrated resorts in Metro Manila, Cebu, Clark, La Union, and Rizal, brought in a combined ₱93.36 billion—accounting for 43.5% of total GGR. This marks a 5.9% drop compared to the same period last year.
Meanwhile, PAGCOR-operated venues contributed only ₱6.56 billion, or 3.1% of the sector’s total. That’s a steep 26.3% year-on-year decline, reinforcing the trend toward digital play.
Overall, the Philippine gaming industry earned ₱214.75 billion (US$3.75 billion) in the first half of 2025, reflecting a 25.6% increase over the same period in 2024.
PAGCOR Tightens Grip on Gambling Ads
With online gambling gaining traction, regulators are turning up the heat on marketing practices. PAGCOR has teamed up with the Ad Standards Council (ASC) to monitor ads more closely across all platforms. The agency is also enforcing a ban on gambling-related advertising in public spaces and during primetime TV hours starting August 15.
“These efforts are part of our broader mission to ensure that online gambling is not only well-regulated but also aligned with public interest,” Tengco said.
Tax Hike Under Consideration Amid Health Concerns
As digital gaming revenues soar, the government is eyeing a higher cut. Finance Secretary Ralph Recto announced a review of license fee rates for online operators, which could jump from the current 25% to as high as 40% of GGR. Tiered options of 30%, 35%, and 40% are reportedly on the table, as the administration targets ₱200 billion in gambling revenue this year.
The move comes on the heels of the Department of Health classifying online gambling as a public health concern—a designation that’s prompting calls for tighter regulation.
No Clear Signal on National Ban
Despite the rising controversy, President Ferdinand Marcos Jr. stayed silent on the issue of a nationwide online gambling ban during his latest State of the Nation Address. While speculation has swirled around potential sweeping restrictions, no official position has been taken.
PAGCOR remains firm in its dual role as both regulator and revenue contributor. “Our role goes beyond revenue generation; and as partners of the government in nation-building, we are committed to always strike a balance between enabling industry expansion and ensuring it aligns with responsible gaming standards,” Tengco said.