Philippine Casinos See Revenue Drop in 2025 as Online Gaming Surges to Industry Lead

The Philippines gaming industry posted solid overall growth in 2025, but traditional casinos faced a challenging year as online gaming continued to dominate the market.

According to data released by Philippine Amusement and Gaming Corporation, total gross gaming revenue (GGR) rose 6.4% year-on-year to Php396.14 billion (US$6.61 billion). However, licensed casinos recorded a 9.6% decline, generating Php182.50 billion (US$3.04 billion).

State-run casinos operated by PAGCOR experienced an even sharper drop, with revenues falling 21.0% to Php12.52 billion (US$209 million), highlighting ongoing pressure on land-based operations.

The overall industry growth was fueled by the rapid expansion of the online gaming segment, which surged 30.0% to Php201.1 billion in GGR. This category includes E-Games, E-Bingo, licensed bingo operators, and both onsite and offsite poker platforms.

PAGCOR Chairman and CEO Alejandro H. Tengco noted that digital gaming now accounts for more than half of total industry revenue, officially surpassing licensed casinos as the primary driver of growth.

“The E-Games and online gaming segment accounted for 50.77% of total industry GGR,” Tengco said, emphasizing that online gaming has evolved from a supporting segment into the industry’s leading force.

Despite its strong annual performance, the online sector experienced a temporary slowdown in the third quarter of 2025. This was due to the disconnection of certain e-wallet services, which disrupted user access and payment processing.

Regulators implemented these changes to improve transaction transparency, enhance player protection, and strengthen trust in the regulated online ecosystem.

Tengco highlighted that the industry’s performance reflects the need for a balanced regulatory approach as gaming continues to evolve. He stressed that long-term sustainability, transparency, and compliance remain central to PAGCOR’s strategy for maintaining a stable and responsible gaming environment.