The Philippines is one of the few countries globally where casinos are legalized and operated under state control, and alongside it, a traditional entertainment industry worth over a hundred billion pesos: cockfighting.
Here, gambling is not a shady underground business but a legal industry written into law, contributing to tax revenue, and driving employment.
So, how did gambling become a legal business in the Philippines?
In the 1970s, gambling was still illegal in the Philippines.
Casinos, underground gambling dens, and private cockfighting arenas were in a gray area. The underground currents flowed, breeding corruption and making regulation difficult.
In 1977, then-President Marcos issued a presidential decree establishing the Philippine Amusement and Gaming Corporation (PAGCOR).
This is a distinctive institution, simultaneously acting as regulator, operator, and tax contributor.
The establishment of PAGCOR had four main objectives:
1. To combat illegal underground casinos and bring gambling into the open
2. To channel gambling revenues into the national treasury, increasing government finances
3. To use gaming revenues to support "national social development projects"
4. To promote the Philippines as the "Entertainment Center of Asia," attracting foreign investment and tourists
For example, the following three casinos are state-owned casinos directly led by PAGCOR.
Casino Filipino Manila Bay, Casino Filipino Cebu, and Casino Filipino Davao, the largest casino on the island of Mindanao.
From this step forward, the Philippines embarked on a unique path: the state itself operates casinos, issues licenses, and takes a cut.
Over the next 40 years, PAGCOR gradually opened directly-operated casinos and licensed foreign capital casinos, shifting policy from control to development.
Entering the 2000s, gambling policies significantly relaxed. The Arroyo (Arroyo) administration promoted several gambling regional development projects, established the concept of Entertainment City, and pushed for casino tourism complexes.
During President Duterte's term, the introduction of the Philippine Offshore Gaming Operators (POGO) model, which allowed Chinese players to gamble remotely, brought in a significant amount of foreign exchange.
In 2020, the outbreak of the pandemic halted offline casinos, and under pressure, PAGCOR agreed to issue local online gambling licenses, starting to tap into the local market.
As of 2023, there are 9 national casinos, 45 licensed casinos, and dozens of electronic gaming halls within the Philippines, with casino turnover exceeding one hundred billion pesos, providing substantial fiscal revenue for the country.
According to data released by PAGCOR: In 2023, the total revenue of the Philippine gaming industry reached 285 billion pesos, with PAGCOR contributing about 70 billion pesos in net revenue to the national treasury, and the gaming industry providing over 200,000 direct and indirect jobs.
This government-led nationalization of gambling is moving forward at full speed.
Casinos represent modern legal gambling, while cockfighting is one of the most deeply rooted traditional forms of gambling in Philippine society.
Cockfighting (Sabong), is a form of entertainment that crosses social classes and is prevalent in both urban and rural areas. During festivals or weekends, cockfighting arenas are bustling with spectators and bettors, becoming a routine part of local culture.
Before a cockfight begins, gamblers place their bets, with only three possible outcomes: left wins, right wins, or a draw. See the blades tied to the chickens' feet? They are coated with poison, and only one chicken will survive.
Typically, legal cockfighting arenas are only allowed to operate during festivals and weekends.
During the 2020 lockdown, a new form emerged: electronic cockfighting (e-sabong), which involves betting on live-streamed cockfights through online platforms.
This is no longer limited by location or the need for crowds; a smartphone is all that's needed to place bets. This model exploded overnight, quickly forming a massive industry chain.
In 2021, the legal tax revenue from e-sabong reached 3.2 billion pesos, with the entire cockfighting industry (including breeding, feed, events, and platforms) estimated to generate over 100 billion pesos annually. At its peak, a single cockfighting event could attract over 500,000 people betting online.
However, the rapid development has brought uncontrolled risks. E-sabong has led to a surge in debts, suicides, and even "cockfighting disappearance" scandals. In 2022, the Duterte government urgently halted e-sabong nationwide.
Of course, only e-sabong was banned; offline cockfighting is unlikely to disappear.
Casinos and cockfighting indeed bring fiscal revenue, job opportunities, and tourist flow, but they also leverage deeper social issues: entertainment for the poor, investment for the rich.
In the Greater Manila area, casinos drive real estate development, hotel construction, and the entry of luxury brands.
Okada Manila is one of the largest integrated resorts in the Philippines, with its gaming business showing significant growth in recent years. In 2022, Okada's total gaming revenue reached 34.3 billion pesos.
In towns and impoverished areas, however, cockfighting is often the primary form of entertainment for workers and farmers and frequently the starting point for their debts.
It is concerning that while the state encourages the gaming industry, it has not effectively established mechanisms for "addiction prevention and debt management." Most low-income groups lack financial knowledge and are prone to gambling addiction, and these risks are ultimately borne by families and society.
PAGCOR claims that gaming taxes will be used for social development, but public services in impoverished areas have not significantly improved.
In Southeast Asia, the Philippines was the first to promote large-scale legalization of gambling and is the only government to lead casino operations.
This has indeed provided the Philippines with additional fiscal revenue, but it has also brought the country into a long-term tug-of-war between policy and ethics.
The nationalization of gambling is a long-term gamble that has yet to show its hand.
