Philippine gaming revenue falls despite rising online casino and bingo income

Charlotte Capewell

30 January 2026 at 7:22am UTC-5

Source: Shutterstock

Email, LinkedIn, and more

Philippine gaming revenues fell by 5.1% to PHP 106.03 billion (US$1.8 billion)1 PHP = 0.0170 USD
2026-01-30Powered by CMG CurrenShift last year, according to figures released by the country’s gaming regulator PAGCOR.

The reduced revenue was due to weaker performance from land-based casinos and the full removal of offshore gaming operators offset the online gambling growth.

Article continues below ad

Despite the revenue drop, PAGCOR said its net income increased 4.2% to PHP 17.47 billion (US$297 million)1 PHP = 0.0170 USD
2026-01-30Powered by CMG CurrenShift, due to streamlining and cost-cutting.

Digital gaming, including online casino games and bingo, was the main source of growth. Online games produced PHP 53.33 billion (US$905 million)1 PHP = 0.0170 USD
2026-01-30Powered by CMG CurrenShift, growing 9.3% annually and accounting for more than half of the regulator’s gaming revenue.

PAGCOR Chairman and Chief Executive Alejandro Tengco said, “The decline in revenues from land-based casinos is largely driven by the gradual change in player behavior, with more customers opting for digital and online gaming platforms.”

Article continues below ad

This follows comments made by Tengco at ICE Barcelona last week, where he highlighted the need for stronger regulatory enforcement in the igaming sector.

The figures were also impacted by the phase-out of offshore gaming operations, which had generated PHP 3 billion (US$51 million)1 PHP = 0.0170 USD
2026-01-30Powered by CMG CurrenShift before a government-imposed ban took effect.

The figures also show that the PAGCOR contributed PHP 66.95 billion (US$1.1 billion)1 PHP = 0.0170 USD
2026-01-30Powered by CMG CurrenShift to the national government and other state programs during the year.

Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.

View Charlotte Capewell's bio and articles.

Locations:

Verticals:

Sectors:

Topics:

Dig Deeper

The Backstory

Digital growth meets a changing revenue mix

PAGCOR’s latest disclosure underscores a structural pivot in Philippine gambling: online play is now the engine, while legacy venues lag. That shift was already visible early this year when the regulator said e-games and e-bingo generated 56% of sector revenue in the first quarter, helping lift total quarterly revenue 11.2% year over year. The agency emphasized fiscal discipline and lower operating costs as profit drivers, noting contributions to the state rose more than 21% in the period. Those trends set the stage for a stronger first half, when industrywide gross gaming revenue climbed 26% and online gaming surpassed $2 billion for the first time as e-games, e-bingo and bingo grantees delivered more than half of all GGR. PAGCOR framed the surge as opportunity tempered by oversight, signaling tighter rules on advertising and compliance even as digital channels expand.

That rebalancing explains how PAGCOR could post rising profits despite softer casino floors. In a market where players migrate online, the regulator’s mix shifts toward higher-growth segments while cost controls buttress the bottom line. The tradeoff: land-based weakness and policy friction around how fast and how far online play should scale.

Read more on the first-quarter breakout in e-gaming’s majority share of revenue and the first-half GGR milestone.

Payment disruption whiplashed earnings

The ascent of online gambling collided with a sharp policy shock last year when the Bangko Sentral ng Pilipinas ordered e-wallet providers to remove gambling payment links. PAGCOR reported a 40% to 50% income drop within two weeks of the delinking, according to testimony at a Senate hearing. The regulator responded by fast-tracking an AI-powered monitoring tool to detect illegal sites and coordinating with cybercrime and telecom agencies to block unlicensed operators. Officials pushed for stricter oversight instead of a blanket ban, while the central bank said it would defer to Congress on the question of curbs versus prohibition. The episode revealed how dependent digital uptake had become on frictionless payments—and how quickly revenues can slide when that access is curtailed.

Even with that hit, PAGCOR later said net income for January to September surged 49% year over year on the back of governance and digital transformation initiatives, with revenues up 5.8%. The rebound suggested the regulator contained the immediate shock and recaptured momentum through tighter costs, disciplined operations and the underlying strength of licensed online play.

Details on the short-term hit appear in PAGCOR’s income decline after payment links were cut, while the subsequent recovery is outlined in its nine-month revenue and profit surge.

Regulatory guardrails tighten around ads

As online revenue grew, advertising practices drew scrutiny. PAGCOR moved to curb visibility and standardize messaging, reflecting concerns about consumer exposure and responsible gaming. In July, the regulator ordered the immediate removal of all billboards and other out-of-home ads by online gaming operators, according to Inside Asian Gaming. Days later, PAGCOR signed a Memorandum of Understanding requiring all gambling ads to be vetted by the Ad Standards Council before airing, Inside Asian Gaming reported, tightening controls across platforms and formats. The policy push aligned with PAGCOR’s message that growth must be accompanied by accountability and consistent standards.

The regulatory optics extended to the political arena. President Ferdinand Marcos Jr. avoided the online gambling debate in his late July State of the Nation Address, Inside Asian Gaming reported, even as calls for a nationwide ban had circulated. The omission signaled the administration’s caution on a sector that delivers revenue but carries social risks. Meanwhile, industry volatility remained evident; the country’s integrated resorts posted a 10.6% sequential decline in second-quarter GGR to $778 million, per Inside Asian Gaming, underscoring uneven land-based performance as online play gained share.

These moves provide context for PAGCOR’s new emphasis on enforcement, marketing standards and payment integrity as it seeks to keep licensed operators onside and unlicensed activity contained.

Public funds and an old mandate renewed

The stakes reach beyond operator margins. PAGCOR’s earnings flow to state programs, a point the agency highlights as justification for steady expansion and tighter governance. In the first quarter, contributions to the state rose to Php18.9 billion, up 21.5% from a year earlier, alongside a 23% rise in net income. Through September, contributions reached Php54.26 billion, reflecting higher remittances to the national government, franchise taxes and funding for socio-civic projects.

One emblematic shift: restoration of a long-standing statutory commitment to sports. PAGCOR agreed to remit 5% of its monthly gross income to the Philippine Sports Commission’s National Sports Development Fund beginning this month, including Supreme Court-mandated arrears estimated at up to Php500 million. The move ends a yearslong legal dispute and aligns near-term cash flows with the original mandate under Republic Act 6847. PAGCOR and the commission also pledged to align priority projects and strategy to accelerate nationwide sports development, tying the regulator’s digital-era gains to grassroots outcomes.

For more on the remittance revival and court ruling, see PAGCOR’s pledge to the sports commission, and for the broader distribution of earnings, see its nine-month results and allocations.

What the digital tilt means for casinos

Online growth is not a zero-sum story, but it is reshaping the ecosystem. Licensed integrated resorts still anchor tourism and employment, and they accounted for roughly 43% of first-half GGR. Yet with e-gaming generating more than half of industry revenue in the period and online income accelerating, land-based operators face pressure to differentiate, invest in non-gaming amenities and integrate digital tools that retain customers without eroding compliance. PAGCOR, for its part, is trying to prevent market drift to illegal platforms through enforcement technology and uniform marketing rules that favor licensed play.

The regulator’s messaging suggests a balancing act: enable digital expansion to safeguard public revenues while managing social risks through ad controls, payment oversight and coordination with telecom and cybercrime agencies. The recent payment disruption demonstrated how sensitive revenues are to infrastructure decisions. The ongoing ad clampdown and standards regime will test whether curbs can coexist with growth.

For a data-driven view of the sector’s momentum and the regulator’s framing, revisit the first-quarter revenue mix and the first-half online milestone. Together they explain how a digital-first model is emerging, and why policy calibration—not just market demand—will determine how durable that shift becomes.