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In a historic milestone, the Philippines' online gaming sector crossed the US $2 billion threshold in gross gaming revenue (GGR) during the first half of 2025, propelled by an unprecedented surge in digital betting activities. Data released by PAGCOR confirms that total GGR reached ₱214.75 billion (approximately US $3.75 billion), marking a 26 percent year-on-year increase.

Electronic gaming—comprising e-games, e-bingo, and licensed bingo operations—drove the lion’s share of that growth. Revenue from this segment amounted to ₱114.83 billion, representing 53.47 percent of total GGR, up from roughly half a year earlier . That translates into more than US $2 billion, the first time the industry has ever surpassed that threshold in a single semester.

Traditional land-based casinos, including integrated resorts across Cebu, Clark, Manila, and beyond, contributed ₱93.36 billion—about 43.5 percent of the total, a figure that declined by nearly 6 percent compared to the previous year. Meanwhile, PAGCOR-operated casinos added the remaining ₱6.56 billion, or 3.06 percent, to industry performance .

PAGCOR Chairman and CEO Alejandro H. Tengco addressed these developments at the Philippine Hotel Connect 2025 conference, acknowledging the immense potential of the online gaming sector while underscoring the importance of responsible governance. “PAGCOR recognizes the earning potential of the e‑games sector, but as the country’s gaming regulator, our foremost responsibility is to ensure that growth comes with accountability,” he emphasized, adding that PAGCOR aims to balance “enabling industry expansion and ensuring it aligns with responsible gaming standards”.

Tengco also revealed that integrated resort casinos paid ₱16 billion in licensing fees to PAGCOR in the first half of 2025, illustrating how the gaming industry's profits directly support public services and government programs. He highlighted that these revenues serve not only to fund social services but also promote tourism, job creation, and hospitality-sector growth across the archipelago: “Tourism, hospitality, and gaming – when aligned and responsibly managed – become a catalyst for national resilience and progress,” he remarked.

Industry dynamics reflect a broader shift. In the first quarter of 2025 alone, electronic gaming generated about ₱51.4 billion—making up 49.36 percent of total industry GGR for Q1, surpassing licensed casinos for the first time . According to analysts, this pivot reflects transformed consumer behavior favoring digital platforms, faster mobile access, and convenience.

However, the online boom is not without controversies. PAGCOR’s e-games segment has been under mounting pressure from calls for greater regulation, higher taxation, or even outright prohibition. Critics cite social harm, gambling addiction, and vulnerability among minors and economically fragile populations. Meanwhile, lawmakers and public voices—including the Catholic Bishops' Conference—have likened unregulated online gambling to a “plague,” urging policy interventions to curb its reach, particularly among young and vulnerable users.

Adding to the upheaval, the government instituted a deadline for Philippine Offshore Gaming Operators (POGOs)—now rebranded as Internet Gaming Licensees (IGLs)—to cease operations by end‑2024. This ban, initiated by a presidential directive, led to license cancellations and enforcement actions as part of broader efforts to dismantle criminal syndicates linked to offshore gambling.

Yet Tengco and other industry leaders remain cautiously optimistic that the digital transformation can coexist with structured oversight. Through advertising restrictions near minors, banning gambling ads during prime-time television, and implementing exclusion programs for problem players, PAGCOR aims to foster a safer gaming environment while sustaining the sector’s economic contributions.

In sum, the Philippines’ first-half 2025 figures reflect a landmark moment: online gaming has not only reached unprecedented scale but has become the dominant driver of the country’s gaming economy. With over US $2 billion in GGR generated, the sector is redefining the industry—though its future will hinge on whether regulators can effectively balance innovation with public welfare and responsibility.