There is an increasing appetite for iGaming expansion in the Philippines as online revenue in the country has overtaken land-based casinos for the first time.
Overall, the Philippine Amusement and Gaming Corporation (PAGCOR) reported modest growth in 2025, with over half of its revenue, 50.77%, being derived from electronic and online gaming, overtaking licensed casinos as the greatest contributor of revenue.
Reacting to the news, PAGCOR’s Chairman and Chief Executive Officer, Alejandro Tengco, said: “The increase in electronic gaming revenues shows how the industry has evolved. Online gaming is no longer a supplementary segment but has now become the leading driver of overall GGR growth.”
Electronic gaming generated revenue of P201.12bn (£2.48bn) in 2025 – a growth of 30% compared to the previous year. This strong performance also drove overall year-on-year revenue growth of 6.39% to P396.1bn (£4.87bn), despite a slump in performance for land-based gaming.
Revenues from licensed casinos declined by 9.58% to P182.50bn (£2.24bn) from P201.84bn (£2.48bn) in 2024, while PAGCOR-operated casinos faired no better, reporting a 21% year-on-year decline in revenue to P12.52bn (£154m).
In recognition of this shift in consumer behaviour, casinos across the Philippines have been seeking expansion into the online sector.
Last week, International Entertainment Corporation, owner of the New Coast Hotel Manila, confirmed that its subsidiary New Coast Leisure Inc. received an Electronic Games Operator licence from PAGCOR in February 2025 and is now in negotiations with a potential operator target.
Meanwhile, Tiger Resort, Leisure and Entertainment, the owner of Okada Manila, has also confirmed plans to launch Okada Play as a way to ‘capture new revenue opportunities’, amid a weakened financial performance in 2025.
Attributed to a decline in VIP revenue and fewer international tourists, the integrated resort generated gross gaming revenue of P27.8bn (£347.5m) in 2025, a decline of 20% year-on-year.
The Philippines is a significant indicator in terms of iGaming growth across Asia, given that it is one of the only countries in the region to have a fully regulated online gaming sector.
A factor fuelling the growth of the Philippines market is the clampdown on the black market- underpinning the potential opportunity for other Asian markets where black markets have dwarfed the regulated sector.
Malaysia serves as a clear example of a market that could learn from the tighter licensing frameworks implemented in the Philippines.
According to data released in 2023, the country’s illegal gambling market generates approximately RM18bn (£3.43bn) each year, meaning that the government is missing out on RM5bn (£951.4m) in vital tax income.
