THE Philippine Amusement and Gaming Corp. (PAGCOR) expects to generate P116.65 billion in revenue this year, propelled by the rapid growth of online gambling and intensified government action against illegal platforms.
About P62 billion to P65 billion of the total will come from the online gaming sector, representing 60% of the agency’s total projected collections, PAGCOR Chairman Alejandro H. Tengco told congressmen at a budget hearing on Wednesday.
The regulator collected about P37 billion from digital betting platforms in the first seven months of the year. Last month, it said it generated P59 billion in the first half.
“Revenue from online gaming has steadily increased since 2021 and grew exponentially in 2024,” he told a House of Representatives committee on appropriations hearing in Filipino.
He also noted that cumulative collections from licensed online gambling firms since 2021 have reached P155 billion, with annual contributions rising from P6 billion in 2021 to P49 billion in 2024, and a projected minimum of P60 billion for 2025.
Despite this growth, PAGCOR continues to confront illegal operators. Mr. Tengco said 60% of online gaming firms accessible in the Philippines are unlicensed, often based overseas in countries such as Russia, Dubai and Cambodia.
There are about 70 legal operators, up from just 30 in the early 2020s. To better regulate the industry, PAGCOR implemented a pause on issuing new licenses in March 2024.
Authorities have also been taking aggressive steps to curb illegal activity. Almost 8,000 unlicensed digital gaming platforms have been shut down, according to PAGCOR.
The Philippine central bank has also ordered e-wallet providers such as GCash and Maya to remove links to gambling sites, cutting online gaming transactions by as much as 50%.
E-wallets had integrated gambling services directly into their apps, facilitating easy access for users and contributing to the sector’s surge.
While these regulatory measures have slowed transactions in licensed platforms, research by The Fourth Wall indicates that users often migrate to unregulated sites when access to legal platforms is restricted.
The study, which surveyed 1,250 online gamblers nationwide, suggests that unregulated platforms are expanding as players shift away from licensed options. This underscores a potential challenge for authorities trying to curb illegal online gambling.
Mr. Tengco also said PAGCOR is considering imposing minimum bet and deposit requirements on digital platforms to discourage excessive gambling. The agency continues to study the potential impact of these measures on both the industry and public welfare.
The rise of online gambling in the Philippines has created both economic opportunities and social concerns. While the sector has become a major revenue source for the government, issues such as gambling addiction and illegal operations remain pressing.
About 18 to 20 million Filipinos are registered on online gambling platforms, with 8 to 10 million actively participating. The government continues to focus on regulating the industry while minimizing risks to players and communities.
Mr. Tengco said PAGCOR is committed to adapting its policies to manage the exponential growth of online gaming.
“We are trying our best to make certain adjustments that are needed so that we could cope better with the exponential growth of online gaming,” he said. — Kenneth Christiane L. Basilio