Digital gambling takes more than half of industry GGR as the market reaches ₱396.14bn ($6.8bn)
The Philippine gambling market has reached a major turning point, with electronic and online gaming overtaking licensed casinos to become the country’s largest source of gross gaming revenue (GGR) for the first time.
According to figures from the Philippine Amusement and Gaming Corporation (PAGCOR), the industry generated ₱396.14 billion (US$6.8 billion) in GGR in 2025, up 6.39% from ₱372.33 billion (US$6.4 billion) in 2024.
The biggest change, however, was the continued acceleration of the digital sector.
Electronic and online gaming generated ₱201.12 billion (US$3.4 billion) during the year, up around 30% from ₱154.66 billion (US$2.7 billion) in 2024. The segment accounted for 50.77% of total industry GGR, giving online gaming the largest share of the Philippine market.
Digital gaming takes the lead
The latest figures underline how quickly the balance between digital and land-based gambling has changed.
Privately operated casinos licensed by PAGCOR generated ₱182.50 billion (US$3.1 billion) in 2025, down 9.58% from ₱201.84 billion (US$3.5 billion) a year earlier.
PAGCOR-operated Casino Filipino venues performed even worse. Revenue declined by 20.95% to ₱12.52 billion (US$214 million).
The contrast with online gaming is striking. While both categories of land-based casino revenue contracted, the electronic and online segment added more than ₱46 billion in annual GGR.
PAGCOR chairman and CEO Alejandro H. Tengco said the figures show that online gaming has moved beyond its previous role as a supplementary channel and has become the main driver of industry growth.
Tax cuts helped accelerate the online market
The rise of regulated digital gaming has coincided with a major reduction in the tax burden applied to e-games.
PAGCOR began cutting its e-games share rate in 2023, when it stood above 50% of GGR.
The rate was subsequently reduced to 35% in April 2024 and then to 30% from 1 January 2025. E-games operated by integrated resorts received a lower 25% rate, reflecting the additional costs associated with their physical casino operations.
The regulator has positioned the tax reductions as a way of encouraging grey-market operators to move into the licensed sector.
There are signs that the strategy has helped expand the regulated ecosystem. PAGCOR had issued 1,188 licences covering on-site and online gaming by 2024, compared with 1,046 a year earlier.
The number of accredited gaming service providers also increased significantly, rising from 49 to 174 over the same period.
The POGO ban reshaped the market
Tax reform was only one part of the transformation.
The government also dismantled the Philippine Offshore Gaming Operator (POGO) sector, removing a major source of offshore gaming activity from the market.
President Ferdinand Marcos Jr announced the closure of POGOs in July 2024. Executive Order No. 74 subsequently stopped new applications and required existing offshore gaming operations to shut down by the end of 2024.
The ban was later formalised through the Anti-POGO Act of 2025, which cancelled remaining licences and eliminated the previous legal framework for offshore operators.
With the offshore sector removed, domestic licensed operators have been given greater room to capture demand through regulated online platforms.
The timing of the two policy changes — lower rates for domestic digital gaming and the elimination of offshore operators — has therefore played an important role in reshaping the competitive landscape.
Online growth is creating new demands on operators
The digital expansion is also changing the employment profile of the Philippine gambling industry.
Data from the Philippine Statistics Authority showed that gambling and betting activities had the highest average annual compensation within the country’s arts, entertainment and recreation sector in 2024, at ₱688,750 (around US$11,700) per paid employee.
The sector employed 38,125 people, representing 49.2% of employment across the wider industry group.
As the regulated online market becomes larger, operators are expected to invest increasingly heavily in specialist roles covering technology, compliance and player protection.
Buenas PH, a PAGCOR-licensed online casino brand, has identified AML and KYC compliance, artificial intelligence and data science, and advanced platform development as key areas for future investment.
Compliance moves to the centre of the digital expansion
The shift towards online gambling also brings greater responsibility for operators and regulators.
With digital platforms now generating more than half of the country’s gambling revenue, player verification, transaction monitoring and responsible gambling controls are becoming increasingly important.
Operators will need to manage AML and KYC requirements at significantly higher transaction volumes while using technology to identify potentially problematic gambling behaviour.
AI and predictive analytics could play a growing role in detecting risk patterns, while specialised technology teams will be required to support new digital products, including emerging esports formats.
The industry’s expansion is therefore creating a market where compliance is increasingly tied directly to technology and operational infrastructure.
What comes next for Philippine gaming?
The 2025 figures suggest that the Philippines has entered a new phase of market development.
Traditional casinos remain a major part of the industry, but online gaming has now established itself as the largest individual contributor to GGR.
For PAGCOR, the challenge will be maintaining that growth while ensuring that the expansion of regulated digital gambling does not create new compliance and consumer-protection risks.
For operators, the opportunity is significant. The combination of a growing domestic digital market, lower e-games rates and the removal of offshore competitors has created favourable conditions for licensed businesses.
But with online gaming already accounting for 50.77% of total GGR, the next stage of the Philippine market will be less about proving that digital gambling can grow and more about demonstrating that it can grow sustainably.
The Philippines is no longer simply a casino market with a growing online sector. Online gaming has become the country’s leading gambling channel — and the industry’s future is increasingly being shaped by what happens on digital platforms.