(AsiaGameHub) – Interest in expanding iGaming operations is growing in the Philippines after online revenue surpassed that of physical casinos for the first time.
In 2025, the Philippine Amusement and Gaming Corporation (PAGCOR) recorded moderate growth, with electronic and online gaming accounting for more than half of its revenue at 50.77%, making it the largest revenue source ahead of licensed casinos.
Commenting on the results, Alejandro Tengco, Chairman and CEO of PAGCOR, stated: “The rise in electronic gaming revenue demonstrates the industry’s transformation. Online gaming has moved from a supporting role to the primary engine for overall gross gaming revenue growth.”
Revenue from electronic gaming reached P201.12bn (£2.48bn) in 2025, a 30% increase from the year before. This robust result propelled total revenue up by 6.39% year-on-year to P396.1bn (£4.87bn), even as land-based gaming performance weakened.
Income from licensed casinos fell by 9.58% to P182.50bn (£2.24bn) from P201.84bn (£2.48bn) in 2024. Casinos run directly by PAGCOR performed similarly poorly, posting a 21% year-on-year revenue drop to P12.52bn (£154m).
Acknowledging this change in consumer preferences, Philippine casinos are increasingly looking to move into the online market.
International Entertainment Corporation, which owns the New Coast Hotel Manila, confirmed last week that its subsidiary New Coast Leisure Inc. obtained an Electronic Games Operator license from PAGCOR in February 2025 and is currently in talks with a prospective operating partner.
Similarly, Tiger Resort, Leisure and Entertainment, the owner of Okada Manila, has announced its intention to introduce Okada Play to ‘capture new revenue opportunities’ following a challenging financial year in 2025.
The integrated resort’s gross gaming revenue declined by 20% year-on-year to P27.8bn (£347.5m) in 2025, a result linked to lower VIP revenue and a drop in international tourist numbers.
The Philippines is a key bellwether for iGaming expansion in Asia, as it is one of the few regional nations with a comprehensively regulated online gaming industry.
One element driving the Philippine market’s expansion is the crackdown on illegal gambling, highlighting a potential path for other Asian markets where black markets vastly outsize the legal sector.
Malaysia is a prime example of a market that could benefit from adopting the stricter licensing models used in the Philippines.
Data published in 2023 indicates the country’s illicit gambling market yields around RM18bn (£3.43bn) annually, leading to an estimated RM5bn (£951.4m) shortfall in crucial tax revenue for the government.
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