The Philippine Amusement and Gaming Corporation (PAGCOR), the primary regulator of the betting sector in the Philippines, closed 2025 with total revenues of 106 billion Philippine pesos, equivalent to $1.8 billion US dollars. This figure represents a 5.1% decrease compared to the previous year, mainly marked by the deterioration of the physical casino segment and the impact of the ban on Philippine offshore gaming operators (POGOs).
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Revenue Breakdown by Segment
PAGCOR’s financial results reveal a transformation in the revenue structure of the Philippine gaming sector. Gaming operations generated 95.2 billion Philippine pesos ($1.62 billion), recording a slight year-on-year contraction. Additionally, the entity obtained 10.9 billion Philippine pesos ($185 million) from other sources such as interest income, service fees, and administrative charges.
Electronic and Online Gaming Lead Revenue Generation
The most outstanding performance corresponded to the digital segment, which now accounts for more than half of the total revenue from gaming activities. Electronic and online gaming, including eGames, eBingo, and bingo beneficiaries, generated 53.3 billion Philippine pesos ($904 million), recording a 9.30% growth compared to the previous fiscal year.
This increase partially offset losses in other segments and provided stability to the regulator’s consolidated results, evidencing a significant migration of players towards digital platforms.
Land-Based Casino Sector Faces Significant Setback
The outlook was considerably less favorable for physical establishments. Licensed casinos experienced a 4.93% drop in their revenue, totaling 31.4 billion Philippine pesos ($533 million). The situation was even more complex for casinos operated directly by PAGCOR, which registered a decrease of 18.12%, reaching just 10.4 billion Philippine pesos ($176 million).
Shift in Player Behavior
Alejandro Tengco, president of PAGCOR, attributed the decline in physical casino revenues to a gradual transformation in consumer preferences. According to Tengco, more and more customers are opting for digital and online gaming platforms, reflecting a global trend towards the digitalization of entertainment.
“This shift underscores the need for regulators to keep pace with how players interact with online gaming products,” stated the official, acknowledging that the industry is undergoing a fundamental transition.
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Strengthening the Digital Regulatory Framework
In response to this new scenario, PAGCOR has responded by implementing significant improvements in its supervisory structure for the digital sector. The regulator has strengthened its regulatory framework for online gaming to ensure player protection and promote responsible gaming practices.
“As digital gaming continues to grow, PAGCOR has implemented significant regulatory enhancements to protect players, promote transparency, and ensure that online gaming operates within a safe and well-regulated environment,” explained Tengco.
Financial Results and Contributions to the State
Despite the decrease in total revenues, PAGCOR reported a 4.18% increase in its net income, reaching 17.5 billion Philippine pesos ($297 million). This result demonstrates efficient management of operating costs, which allowed for improved profitability despite revenue generation challenges.
PAGCOR’s total contributions to national development reached 67 billion Philippine pesos ($1.14 billion), a figure slightly lower than the 68.2 billion Philippine pesos ($1.16 billion) from the previous year. These contributions represent an important component of government funding for development and infrastructure projects.
Outlook for the Philippine Gaming Sector
PAGCOR’s 2025 results reflect an industry in transformation, where digitalization is not an option but a necessity. The sustained growth of the online segment suggests this trend will continue, while land-based casino operators will need to adapt by integrating digital technologies or differentiating through unique in-person experiences.
The regulator’s challenge will be to maintain a balance between fostering digital innovation and protecting jobs and investments in the traditional sector, while ensuring that all gaming channels operate with the highest standards of safety and responsibility.
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