The Philippine online gaming industry is facing heightened regulatory scrutiny following a new legislative proposal and growing societal backlash, sparking steep declines in gaming-related stocks.
According to reports, shares of DigiPlus Interactive Corp., the country’s largest online gaming company, fell by as much as 30 percent on Thursday before paring losses. Meanwhile, Bloomberry Resorts Corp., a newcomer to the domestic e-gaming space, dropped by up to 12 percent. The declines followed consecutive losses earlier in the week amid mounting regulatory uncertainty.
The volatility was reportedly triggered by a bill filed by Senator Sherwin Gatchalian that seeks stricter controls on online gaming. The proposed measures include banning the use of e-wallets like GCash and Maya for betting, raising the minimum player age to 21, and imposing a PHP10,000 ($175) minimum deposit requirement to discourage participation from low-income players.
Local media reports indicate that Senator Gatchalian has linked the growing accessibility of online gambling—facilitated by e-wallet platforms—to a surge in addiction, financial hardship, and related criminal activity, which he argues has had a detrimental impact on many Filipino families.
The proposal also comes amid strong criticism from the Catholic Church. Cardinal Pablo Virgilio David condemned the government’s support of online gambling, warning that the proliferation of e-games has turned smartphones into “portable casinos,” placing Filipino youth at risk.
Despite the growing backlash, Gatchalian clarified that a total ban is not being considered, in order to avoid pushing the industry underground. Nonetheless, fears of a broader crackdown have unnerved investors.
The controversy comes during a period of rapid growth in the sector. In the first quarter of 2025, the Philippine Amusement and Gaming Corp. (PAGCOR) reported that e-games contributed PHP51.39 billion ($901.6 million)—nearly half of the industry’s PHP104.12 billion ($1.83 billion) gross gaming revenue—surpassing traditional casino operations for the first time.
PAGCOR Chairman Alejandro H. Tengco acknowledged the sector’s rising influence and emphasized the need to balance innovation with consumer protection and sustainability.
Still, with 64 accredited system operators and 12 online platforms active as of mid-June, the industry’s rapid digital expansion continues to outpace regulation—leaving lawmakers, religious leaders, and investors grappling with its social and economic implications.
