As we enter a pivotal period for the fate of the Philippines’ iGaming industry, we examine the political rollercoaster that has brought us to this critical juncture.
The future of the sector will be decided by a series of debates that are set to take place within the country’s government over the coming weeks.
iGaming Expert breaks down the myriad of chapters that have led to the thriving Philippines market sitting on the cusp of ceasing to exist.
‘Crime hubs’ in the crosshairs
The story of upheaval within the Philippines’ gaming market began last year when President Ferdinand Marcos Jr announced that POGOs would be banished from the country.
This began a focus on growing the country’s in-land regulated gaming industry, known as PIGOs, and modernising its gaming sector.
The decision was also taken in a bid to open up more opportunities for foreign investment and promote sustainability within the country’s gaming industry.
Marcos’ unexpected announcement to abruptly ban POGOs was met with adulation from the country, given their close association with crime and illicit actors.
POGO decision pays off
The decision of Marcos to eradicate POGOs from the country was cited as playing a substantial role in the Philippines achieving another important milestone in its attempts to legitimise its position as a regulated gaming destination.
This came in February when the country was removed from the Financial Action Task Force’s (FATF) grey list, having been placed on the list in 2021 due to “lax implementation of anti-money laundering efforts”.
PAGCOR noted that following the country’s removal from the grey list, it would do its part to continue to strengthen regulations and monitor the local gaming industry.
Speaking on the achievement last month, Dominique Laconico, President and CEO of MegaBet+ and Scorebet, told iGaming Expert: “By addressing these issues and achieving removal from the grey list, the Philippines demonstrates a strong commitment to strengthening its regulatory framework, improving transparency, and combating financial crimes.
“This boost in credibility is essential for attracting responsible operators, encouraging foreign investment, and establishing the country as a more reputable gaming hub.”
Black market presence remains
Despite this progress, PAGCOR’s Chair, Alejandro Tengco, was forced to warn of the threat of the black market, explaining that only 45-50% of the Philippines’ market is currently regulated.
Reflecting on this state of affairs in July, Tengco threw his support behind stricter regulations, affirming that “regulation is key” to strengthening the country’s gaming market.
Prohibition threats
These words followed the major threat that the online gaming industry is now facing.
Despite raking in almost £2.8bn (P214.8bn) in the first half of 2025, the industry was rocked when Senator Juan Miguel Zubiri filed the ‘Anti-Online Gambling Act of 2025’, a bill that seeks to implement an outright ban on online gambling.
Zubiri described the gambling addiction in the Philippines as a growing “silent epidemic”. He added: “For as long as gambling is within reach by almost anyone online, this is a social cancer that will continue to fester”.
In same week, Senator Sherwin Gatchalian also set forth a proposal to bring in more stringent regulations surrounding gambling, which includes a ban on using e-wallets to fund online betting, a minimum player age of 21 and, to discourage participation by low-income players, a minimum deposit requirement of P10,000 (£129).
President Marcos weighs in
Fears escalated when President Marcos slammed the impact of online gambling.
In a video released on Marcos’ social media, the President lamented the ease with which digitisation has allowed Filipinos to access gambling products.
He said: “One of the things digitalisation has made easier is gambling. Many families are being destroyed by it, especially when used irresponsibly. Technology should help make Filipino families successful and united, not destroy them.”
When questioned by the media, the President’s Press Officer, Clare Castro, also failed to rule out the possibility of increased regulation, explaining that the President is weighing up the consequences of making such a drastic decision.
The industry rallies back
In response, the gaming industry warned of the dire economic consequences of taking such drastic action.
Digiplus, the country’s largest gaming operator, emphasised that the touted outright ban on online gaming could lead to over 50,000 job losses.
The company’s Chair, Eusebio Tanco, implored the country’s lawmakers to consider the potential consequences of a total ban.
He stated: “We are open to evolving and improving wherever needed. If there are new standards to meet, or better ways to protect players, we will act swiftly and responsibly. But please, do not condemn an industry, and the 50,000 Filipino families who rely on it, without hearing the facts first.”
The company, which operates brands such as BingoPlus, ArenaPlus and GameZone, suggested that the licensed industry is being “made to answer for the crimes of illegal operators who respect neither law nor livelihood”.
Silence is golden?
President Marcos was widely expected to provide an update on the issue during his State of the Nation address on 28 July, however, the topic didn’t make it onto his agenda though. Instead, perhaps understandably, he focused on the Philippines recovering from flash flooding that had ripped through the northern regions of the country in the days before his speech.
Intended to set out the government’s intent for the year ahead, industry commentators praised Marcos for remaining silent, describing the move as a “well thought out strategy, rather than an oversight”.
In spite of clarity, there was also a positive outlook, as Keith McDonnell, Director at KMI Group, noted that the silence allows time for careful consideration of the impacts of such drastic changes.
Responding to the address, McDonnell told iGaming Expert: “What the Philippines needs most now is time to carefully consider how a regulatory framework and workable tax system can provide long-term benefits to the local economy while protecting the most vulnerable.
“Everyone knows an outright ban on [inland gaming operators] would drive things underground, leading to more social, economic and political problems.
“Knee-jerking amidst the first calls for banning would blow that opportunity and damage the economy.”
Economic crossroads
McDonnell also pointed to the opportunity the Philippines has to establish itself as “the place for regulated business” in South East Asia, given the region’s lack of established gaming markets and the Philippines’ strong heritage in gambling.
Macau remains the leading destination for gaming in the region, but the majority of countries in the region play host to grey or wholly unlicensed markets.
He also argued that the Philippines could act as the perfect gateway for international operators into other countries in the region.
“The Philippines has the potential to become a significant hub within the Asian gambling ecosystem,” agreed Laconico. “Its strategic location, large and tech-savvy population, and established gaming infrastructure already provide a strong foundation.
“However, realising this potential depends on several critical factors, including the continuation of regulatory reforms, the enhancement of transparency and compliance measures, and the adaptation to regional trends such as the increasing emphasis on responsible gaming practices.”
PAGCOR – which Laconico noted is one of the world’s oldest regulators, given that it has been overseeing gaming since 1976 – also sought to highlight the key role gaming plays in the Philippines’ economy.
The regulator announced earnings of P59bn (£765.2m) off the back of gross gaming revenues (GGR) of P214.8bn in the first half of 2025, up 14% from the same period last year.
As a result, PAGCOR’s contributions to ‘nation-building’ rose to P38.1bn, up 20% year-on-year from P31.8bn.
“P25.36 billion was remitted to the National Treasury as the mandated government share,” said Tengco. “From that government share, P30 million was remitted to the Dangerous Drugs Board while half of the remaining amount – around P12.7 billion – was the PhilHealth share.”
The regulatory bodies Chair estimates that contributions to healthcare could reach P25bn if current growth remains at the same pace.
What now?
On the precipice of a vital moment for the gambling sector in the Philippines, local media is reporting that a total of four bills, three resolutions and a privilege speech addressing the impact of the online gaming industry will be discussed by the Philippine Senate’s committee on games and amusements.
The outcome will determine whether the industry will be subject to tighter regulations or a total ban.
While increased regulation is not always preferable for the development of an industry, it is clear that change is afoot and greater scrutiny is preferable to an outright ban.
In the days before the inquiry began, 19 operators, including Digiplus formed the PlaySafe Alliance of the Philippines. The group states that in doing so they have demonstrated their commitment to responsible gaming, regulatory compliance, consumer protection and combatting illegal gambling.
In addition, PAGCOR has already taken steps to increase regulatory scrutiny.
The governing body has mandated the removal of all out-of-home gambling advertisements and also inked a memorandum of understanding with the Ads Standards Council, under which gambling ads across all platforms will be required to be approved before being aired.
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