PAGCOR released its full-year 2025 gaming industry report in April 2026, revealing a market undergoing a fundamental structural shift. Online and electronic gaming has overtaken land-based casinos as the largest revenue contributor for the first time in the industry’s history. Here are the key numbers and what they mean.
The Philippine gaming industry generated PHP396.14 billion ($6.61 billion USD) in gross gaming revenue in 2025 — up 6.39% from 2024. For the first time ever, online and electronic gaming (PHP201.12 billion) overtook licensed casinos (PHP182.50 billion) as the largest GGR contributor, accounting for 50.77% of total industry revenue.
The Philippine gaming industry’s 2025 annual report tells two very different stories depending on which part of the market you look at. On the surface, total gross gaming revenue grew 6.39% to PHP396.14 billion — a respectable result for a maturing market. But beneath that headline figure, the industry is undergoing its most significant structural shift in decades. Online and electronic gaming surged 30% while land-based casinos fell nearly 10%. The era of the casino floor as the primary driver of Philippine gaming revenue is over.
PAGCOR Chairman and CEO Alejandro Tengco confirmed the shift in the official report released in April 2026: “Online gaming is no longer a supplementary segment but has now become the leading driver of overall GGR growth.”
2025 GGR Breakdown by Sector
The Philippine gaming market is divided into three main segments under PAGCOR regulation. Here is how each performed in 2025.
| Segment | 2025 GGR (PHP) | 2024 GGR (PHP) | Change | Share of Total |
|---|---|---|---|---|
| Online & Electronic Gaming | PHP201.12B | PHP154.66B | +30.04% | 50.77% |
| Licensed Casinos | PHP182.50B | PHP201.84B | -9.58% | 46.07% |
| PAGCOR-Operated Casinos | PHP12.52B | PHP15.84B | -20.95% | 3.16% |
| Total Industry GGR | PHP396.14B | PHP372.33B | +6.39% | 100% |
Online Gaming Overtakes Land-Based — Why It Matters
The 2025 result marks the first time in Philippine gaming history that online and electronic gaming has accounted for more than half of total industry GGR. Revenue from the online and electronic gaming segment, including E-Bingo, E-Games, Bingo Grantees, and onsite and offsite poker, generated PHP201.12 billion, up 30.04% from PHP154.66 billion in the previous year.
The growth came despite a significant setback in Q3 2025. The online segment faced headwinds during the third quarter after the delinking of e-wallets and the introduction of tighter digital payment rules, which disrupted access and coincided with a decline in new players. The fact that the segment still posted 30% annual growth despite a mid-year disruption underlines the structural strength of demand.
“The E-Games and online gaming segment accounted for 50.77% of total industry GGR. It has overtaken licensed casinos as the largest GGR contributor.”
— Alejandro H. Tengco, PAGCOR Chairman and CEO, April 2026What Drove Online Gaming Growth
- E-Games expansion — The proliferation of licensed e-game cafes and online gaming terminals across the Philippines continued at pace in 2025, as reported by iGaming Business, bringing regulated gaming to areas far outside Metro Manila.
- Mobile accessibility — Smartphone penetration across the Philippines means players can access licensed online gaming platforms without visiting a physical venue.
- POGO exit created vacuum — The 2024 ban on Philippine Offshore Gaming Operators redirected regulatory focus and resources toward domestic online gaming, accelerating its development.
- Player preference shift — Younger Filipino players increasingly prefer digital gaming over land-based casino visits, a trend accelerated by the post-pandemic shift to online activity.
Why Land-Based Casino Revenue Declined
Revenues from licensed casinos fell about 9.58% to PHP182.50 billion in 2025, down from PHP201.84 billion a year earlier. Meanwhile, PAGCOR-operated Casino Filipino venues recorded a sharper decline of around 21% to PHP12.52 billion.
The decline reflects several converging pressures:
- Geopolitical impact on VIP gaming — PAGCOR CEO Tengco noted that global geopolitical tensions and rising fuel costs weighed on land-based operations, particularly the high-value VIP junket segment.
- POGO ban removed Chinese players — The exit of Philippine Offshore Gaming Operations reduced the flow of Chinese gaming tourists and associated VIP play at integrated resorts.
- Competition from online alternatives — The rapid growth of licensed e-games drew casual gamblers away from physical casino venues.
- Integrated resort saturation — Solaire, Okada Manila, City of Dreams, and Resorts World Manila are all competing for the same premium player pool in Metro Manila.
Key context: Despite the decline, licensed casinos — which include Solaire Resort, Okada Manila, City of Dreams Manila, and Resorts World Manila — still generated PHP182.50 billion ($3 billion USD), making the Philippines one of the largest casino markets in Southeast Asia even on the land-based segment alone.
PAGCOR’s Contribution to Public Funds
One of PAGCOR’s primary mandates is to generate revenue for the Philippine government. In 2025, despite the mixed performance across segments, the regulator’s contributions remained significant.
| Recipient | Amount (PHP) | Amount (USD) | Purpose |
|---|---|---|---|
| National Treasury | PHP25.36B | $440M | Infrastructure, health, education, social services |
| PhilHealth | PHP12.70B | $221M | Universal healthcare contributions |
| Philippine Sports Commission | PHP1.30B | $22.6M | Sports development programs |
| Socio-Civic Initiatives | PHP7.90B | $137M | Community programs and livelihood |
| Dangerous Drugs Board | PHP30M | $521K | Anti-drug programs |
| Total Contributions | PHP38.10B | $662M | Up 20% from 2024’s PHP31.8 billion |
What the 2025 Numbers Mean for Players and Operators
For Filipino Players
- More licensed options — The growth of e-games means more regulated, licensed platforms are available outside Metro Manila’s integrated resorts.
- Tighter payment rules — The e-wallet delinking in Q3 2025 signals that PAGCOR is tightening digital payment oversight. Players should expect stronger KYC requirements and payment verification going forward.
- Stricter advertising — PAGCOR’s agreement with the Ad Standards Council means gambling advertising will face stricter pre-screening across all platforms.
For Casino Operators
- Online is no longer optional — The 2025 data confirms that any Philippine gaming operator without a strong online product is losing market share.
- Land-based recovery depends on tourism — Integrated resort revenue recovery is tied to the return of VIP tourism and international visitors rather than domestic player growth.
- Regulatory environment tightening — PAGCOR’s increasingly strict approach to digital payments, advertising, and compliance means operators face higher compliance costs in 2026 and beyond.
Frequently Asked Questions
Published: April 20, 2026. Source: PAGCOR 2025 Annual GGR Report, released April 2026. All figures sourced directly from official PAGCOR data. USD conversions at approximate prevailing exchange rates.
