In the "post-manufacturing era" of Southeast Asia, countries are searching for new economic engines. Tourism, e-commerce, and BPO are important, but over the past decade, the gambling industry has risen strongly in some countries, becoming a new battlefield eagerly pursued by capital.
Especially in the Philippines, which once built the largest gambling hub in the region, it was unrivaled for a time.
Manila, Clark, and Cebu are not only home to resort-style casinos, but offshore gambling (POGO) companies have also surged in, driving office rents, infrastructure, and cross-border labor movement, forming a complete gambling economic chain.
However, today, as the wave of international compliance hits and policies tighten, the Philippine gambling industry seems to have reached a delicate turning point:
On one hand, the market size remains huge; but on the other hand, international top gambling giants have yet to appear.
The resurgence of the gambling craze, is the Philippines ready?
As the pandemic recedes, tourism warms up, digital payments become widespread, and online entertainment rises, gambling is back in the spotlight. The Philippines almost has all the elements needed for a "gambling heart":
✅ The three major cities continuously improve gambling facilities; ✅ PAGCOR's annual revenue breaks through 220 billion pesos; ✅ The government announces the "privatization" of PAGCOR, withdrawing from operational roles and only retaining supervision, releasing favorable policies.
From the perspective of location, labor, cost, and policy experience, the Philippines undoubtedly has the "best physique" for gambling development in Southeast Asia.
But the question arises: Why has no international top gambling group truly entered the market?
From cockfighting to entertainment cities: A brief history of Philippine gambling
The development of gambling in the Philippines can be traced back to the colonial period, with entertainment forms such as cockfighting, lotteries, and horse racing already existing. During the American governance era, more systematic "legal gambling" was introduced.
In 1976, President Marcos signed a decree establishing PAGCOR, officially legalizing gambling, and starting a special economic path with "gambling funds for infrastructure, giving back to society."
In the 1990s, private capital was gradually permitted to participate, giving rise to resort-style gambling venues and a preliminary modern operational structure.
In 2008, "Manila Entertainment City" was launched to match Las Vegas, becoming a national showcase for the foreign gambling industry.
In 2016, the Duterte government advanced the legalization of POGO, attracting a large number of Chinese-funded online gambling companies, and the market exploded for a time.
But starting in 2020, the pandemic and Chinese crackdowns occurred simultaneously, making POGO a high-pressure policy area, exposing the flexibility issues of Philippine laws and regulations.
In 2024, the government announced the complete withdrawal of PAGCOR from gambling operations, transitioning to a pure regulatory agency, responding to global compliance pressures, and attempting to reshape market confidence.
What's missing is not the market, but "trust"
Gambling consultant Yukseker believes that the core issue in the Philippines is not the lack of users, policies, or revenue, but the absence of "a real big player."
Over the years, the Philippines has attracted countless medium-sized gambling companies, but not a single American, Australian, or Singaporean gambling giant has chosen to establish a base here.
The reasons behind this include:
Lack of regulatory transparency: Top capital demands a highly stable and predictable legal system;
Lack of compliance confidence: The industry worries about the policy rhythm of "initial relaxation, later suppression";
Lack of leading brands: Without industry benchmarks entering the market, it is difficult to establish international capital's trust expectations.
Ultimately, the Philippines does not lack enthusiasm, but a sense of institutional certainty.
Southeast Asia's landscape: The strategic vacancy of the Philippines
Looking at the entire region, the Philippines still has a clear locational advantage in the gambling market:
Thailand: Not yet legislated, with large social controversies;
Vietnam: Slow progress, mostly foreign investment;
South Korea: Only open to foreigners, with a limited target audience;
Singapore: Capped existing capacity, extremely high barriers to new entries.
Compared to others, the Philippines has a large local population, an open legal framework for gambling, and certain operational experience, naturally making it a prime candidate for the "gambling hub."
But without a clear signal, real international giants are still watching. What they are waiting for might not just be "licenses," but a clear commitment under a reform of the system — one that would allow giants to "enter blindly."
The Philippines has a good hand, but the final ace has not yet been played.
