The Philippines is among the countries with the highest contribution of electronic games gross gaming revenue (GGR) to national GDP globally, reaching 0.68 percent in the first quarter of 2025, according to investment bank Maybank.
This marks a dramatic increase from roughly 0.1 percent in the third quarter of 2023, highlighting the explosive growth of the country’s online gambling sector.
Despite appearing modest in absolute terms, Maybank analyst Raffy Mendoza warns this percentage significantly exceeds the 0.04 percent to 0.30 percent range recorded by developed markets with legal online gambling frameworks in fiscal year 2024, including Australia, Canada, the United Kingdom, and the United States.
The report was issued amid the country’s escalating discussion over the possibility of banning online gambling.
The Philippine Amusement and Gaming Corporation (PAGCOR) reported total industry GGR grew 27 percent year-on-year to PHP104.1 billion ($1.84 billion) in the first quarter of 2025. Online gambling and bingo contributed 49.4 percent of total GGR, with online gaming revenues surging 110 percent year-on-year to PHP47.2 billion ($834 million), surpassing physical casinos’ contribution of 47.3 percent for the first time.
‘The exponential growth of e-games was most apparent in 4Q23, when it grew 2.9x QoQ to PHP18.4 billion ($325 million),’ noted analyst Raffy Mendoza in the research report. The sector has maintained an average quarterly growth rate of 21 percent since then.
The rapid expansion coincided with DigiPlus Interactive Corp.’s entry into the online gaming space in January 2022. Traditional casinos experienced declining growth during the same period, attributed to factors including the crackdown on casino junkets that brought Chinese VIP players and increased scrutiny of Philippine Offshore Gaming Operators (POGOs).
Physical casinos’ GGR declined 5 percent year-on-year to PHP49.3 billion ($871 million) in the first quarter of 2025, despite representing nearly half of total gaming revenue. The weakness in traditional casinos was further exacerbated by President Marcos Jr.’s POGO ban announced during his State of the Nation Address in July 2024, particularly affecting Entertainment City establishments.
The remarkable growth has sparked intense debate among stakeholders regarding the future of online gambling regulation. Various proposals have emerged, ranging from complete prohibition to stricter regulatory measures including restricting e-wallet access, raising minimum bet sizes from PHP20 ($0.35) to PHP5,000-10,000 ($88-$177) per bet, and implementing additional 10 percent sin taxes on top of current taxation rates of approximately 39 to 45 percent for e-gaming operators.
The Department of Finance has also proposed requiring e-gaming operators to list on the Philippine Stock Exchange as part of enhanced regulatory oversight. Meanwhile, PAGCOR has already ordered the immediate dismantling of all gambling billboards and out-of-home advertisements in coordination with the Ad Standards Council.
Maybank has downgraded its sector outlook for gaming from positive to neutral amid regulatory uncertainties, maintaining a hold rating on Bloomberry Resorts Corp. until greater clarity emerges. The investment bank anticipates President Marcos Jr.’s upcoming State of the Nation Address on July 28th will provide definitive direction on the sector’s regulatory future.
