The Philippine gaming industry saw a substantial increase in its gross gaming revenues (GGR), reaching PHP396.14 billion ($6.61 billion) in 2025, marking a 6.4% rise compared to the previous year. However, while the overall industry experienced positive growth, the traditional casino sector faced a decline in revenues, further highlighting the shifting dynamics within the country’s gaming landscape.

Online Gaming Overtakes Licensed Casinos in Revenue Contribution

A significant portion of the industry’s overall revenue growth came from the online and electronic gaming sectors. These segments, which include E-Bingo, E-Games, Bingo Grantees, and both onsite and offsite poker, generated PHP201.12 billion ($3.35 billion) in 2025, a remarkable 30% increase from PHP154.66 billion ($2.58 billion) in 2024. According to PAGCOR Chairman and CEO Alejandro H. Tengco, this surge in online gaming revenues has propelled the sector to become the largest contributor to the country’s total GGR, surpassing traditional licensed casinos. “The E-Games and online gaming segment accounted for 50.77% of total industry GGR,” Tengco said, emphasizing the increasing prominence of the digital sector.

In contrast, the revenue from licensed casinos fell by 9.6% to PHP182.50 billion ($3.04 billion), down from PHP201.84 billion ($3.37 billion) the year before. PAGCOR-operated casinos, such as those under the Casino Filipino brand, also recorded a decline, generating PHP12.52 billion ($209 million), marking a nearly 21% drop.

While the electronic gaming and online gambling sectors showed remarkable growth, the industry did face some challenges in the third quarter of 2025. The Philippine Amusement and Gaming Corporation (PAGCOR) reported a temporary slowdown in revenues following the implementation of stricter digital payment reforms, particularly the de-linking of e-wallets. This change disrupted player access and payment channels, causing a dip in transactions during that period.

Tengco explained that these adjustments to the digital payment systems were necessary to enhance transaction traceability, improve player protection, and ultimately boost confidence in the regulated online gaming sector. “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, according to Inside Asian Gaming.

The Importance of Regulatory Balance

The year’s results underscore the evolving nature of the gaming industry in the Philippines, with online gaming shifting from a supplementary sector to the primary driver of GGR growth. Tengco highlighted the importance of maintaining a balance between industry growth and regulatory oversight to ensure the sector’s long-term success. As online gaming continues to dominate, maintaining transparency and compliance will be key for the stability of the industry.

Despite the decline in traditional casino revenues, the Philippine gaming market remains robust, with new challenges and opportunities emerging as the digital gaming sector matures. The ability to adapt to these changes and continue growing in a sustainable manner will be crucial for both the online and land-based sectors in the years ahead.