The 3rd quarter of 2025 marked a period of smooth development in the Philippine gambling industry, with no significant fluctuations. The digital vertical helped maintain overall results at last year’s level, despite a noticeable weakening of the ground sector and e-wallet restrictions.
Market Dynamics and Revenue Structure
In Q3, operators' total GGR amounted to PHP 94.51 billion, down just PHP 100 million YoY. The iGaming segment, which grew to PHP 41.95 billion from PHP 35.71 billion a year earlier, helped keep the balance.
Activity peaked in July, before e-wallet providers were required to remove their links to licensed entertainment platforms. After the rule came into effect, the figures began to decline gradually.
Offline formats showed the opposite picture:
- casinos that belong to private operators — PHP 45.56 billion (-10.2%);
- PAGCOR-owned properties — PHP 3.22 billion (-11.6%);
- bingo draws — PHP 3.79 billion (-16.2%).
Revenue share was split almost equally: land-based establishments accounted for 48.2%, while iGaming services reached 44.4%. These ratios reflect the nation’s growing curiosity in web content, including online poker rooms, slots, lotteries, and sportsbooks.
Contrast with Early 2025: Increasing Digitalisation
The dynamics in this year’s H1 were completely different: PAGCOR reported a GGR of 214.75 billion, 26% higher than the figure for the same period in 2024. Internet products skyrocketed by 82.67%, while the offline segment declined moderately. The rapid expansion of the web vertical has raised concerns among some public organisations and legislators in the state.
Critics put forward the following arguments:
- Online services attract a younger, more vulnerable audience.
- The risk of financial issues increases for families with low income.
- Current regulations are not keeping pace with the tempo of digitalisation.
Against this backdrop, Juan Miguel Zubiri, one of the country’s senators, introduced a bill that could have prohibited internet gambling and related transactions through e-wallets. The lawmaker noted that tax revenues do not offset the negative social impacts. His colleague, Erwin Tulfo, supported the idea, believing that iGaming poses significant risks to the younger generation.
Legal Measures and Adaptation to Requirements
PAGCOR’s Chairman took the opposite stance, advocating for stronger oversight rather than a blanket ban. According to Alejandro Tengco's statement, the regulatory body’s primary duty is to promote market growth while upholding responsible principles.
In August, the Philippines' Central Bank restricted the use of embedded links to operator websites in e-wallet apps. That decision impacted industry activity towards the end of the 3rd quarter.
The authority’s Chairman believes the decline was temporary and that additional measures were necessary to ensure secure transactions. He also urged the public to avoid unlicensed platforms, as they fail to comply with national standards, evade taxes, and expose players to the risks of data breaches and fraud.
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