Gross gaming revenue (GGR) from the Philippines’ integrated resort (IR) casinos reached PHP93.36 billion (US$1.65 billion) in the first six months of 2025, according to Alejandro Tengco, Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR). Despite the impressive first-half performance, second-quarter results reflected a downturn, with licensed casino GGR dropping 10.6% from Q1 to PHP44.1 billion (US$778 million).

Market Share Shrinks as VIP Play and POGOs Decline

Speaking during the Philippine Hotel Connect 2025 seminar, Tengco emphasized the essential role of IRs in supporting tourism and economic growth, even as new market dynamics begin to reshape the landscape. PAGCOR’s data revealed that integrated resorts accounted for approximately 43.4% of the country’s total gaming industry GGR in the first half of 2025, down from 47.3% in the first quarter.

This decline in market share coincides with the ongoing contraction of the VIP gaming segment—a downturn partially attributed to the government’s crackdown on offshore operators, commonly referred to as POGOs (Philippine Offshore Gaming Operators). Their exit from the market has contributed to the reduction in high-stakes play, especially among international VIP clientele. At the same time, domestic online gambling—particularly eGames—continues to grow, further shifting the revenue balance away from traditional commercial-sector casinos.

Economic Contributions Still Significant

As published by the regulator, despite the quarterly setback, Tengco stressed that the financial impact of integrated resorts remains deeply valuable to the national economy. In his keynote at the Manila-based seminar, held at Newport World Resorts, he stated: “Of the PHP93.36 billion generated by the integrated resort casinos, PHP16 billion was paid to PAGCOR as licence fees, ensuring funding for government social services and driving the country’s economic growth.”

He went on to underscore the importance of the casino-hospitality sector’s broader influence: “We have seen time and again how a thriving hospitality sector can drive employment, fuel trade, revive local enterprises and bridge communities,” Tengco said. “And nowhere is this more evident than in the huge tourism contributions from our licensed integrated resort casinos within and outside Metro Manila.”

According to Tengco, casino operators also provide essential funding for health care, education, and military support through their affiliated cultural foundations. These initiatives illustrate how gaming, when managed with responsibility and regulatory alignment, can function as a tool for sustainable development.

While the GGR slowdown in Q2 signals a challenge for commercial-sector casinos, PAGCOR’s leadership appears focused on adaptation rather than alarm. The rise of domestic digital gaming alternatives and the shifting dynamics of the VIP segment suggest the industry is entering a new phase—one that may require rebalancing of strategy and services.

Still, the resilience and contributions of IRs remain undisputed. “Their contributions are concrete examples of how tourism, hospitality, and gaming – when aligned and responsibly managed – become a catalyst for national resilience and progress,” Tengco affirmed.