The online gambling industry in the Philippines is experiencing unprecedented rapid growth. According to the latest research report released by Maybank, by the first quarter of 2025, the total revenue (GGR) from electronic gaming and online gambling in the Philippines will account for 0.68% of the country's Gross Domestic Product (GDP), a significant increase from 0.1% in the third quarter of 2023. This ratio not only sets a record but also positions the Philippines as the country with the highest contribution of online gambling to GDP worldwide.
Maybank analyst Raffy Mendoza noted that this figure far exceeds the levels commonly seen in mature markets such as Australia, Canada, the UK, and the USA, which range between 0.04% and 0.30%, indicating an explosive expansion of the Philippine gambling industry.
Data disclosed by the Philippine Amusement and Gaming Corporation (PAGCOR) also confirms this trend: in the first quarter of 2025, the total gambling revenue nationwide grew by 27% year-on-year, reaching 104.1 billion pesos (approximately 1.84 billion USD). Among this, online gambling and bingo-related businesses contributed nearly half, accounting for 49.4%, surpassing physical casinos, which accounted for 47.3%. Notably, online gambling revenue surged by 110% year-on-year, reaching 47.2 billion pesos (approximately 834 million USD); whereas physical casinos saw a decline of 5% due to the POGO ban and the loss of high-net-worth clients, recording only 49.3 billion pesos (approximately 871 million USD) in revenue.
Mendoza further analyzed that since the fourth quarter of 2023, electronic gaming gambling revenue has nearly tripled quarter-over-quarter, reaching 18.4 billion pesos (approximately 325 million USD), and has maintained a steady quarterly growth rate of 21%. Since DigiPlus Interactive Corp joined the online market in 2022, the entire gambling industry structure has significantly changed, with online operations gradually becoming mainstream.
However, the explosive growth has also triggered intense attention from policy and regulatory authorities. Currently, the Philippine government is considering further strengthening the regulation of online gambling, including significantly raising the minimum betting amount (potentially to 5000 to 10,000 pesos per bet), introducing a 10% "sin tax," mandating operators to go public to increase transparency, and restricting electronic wallets and other payment channels.
Additionally, the Ministry of Finance and PAGCOR have recently joined forces to start removing roadside and outdoor gambling advertisements to curb excessive industry promotion. The industry generally expects that President Marcos will clarify the future regulatory policy for online gambling in his upcoming State of the Nation Address on July 28.
Maybank has downgraded the Philippine gambling industry's rating from "positive" to "neutral," alerting investors to the rising policy risks. Despite the considerable industry growth, the regulatory trend cannot be ignored, and the "golden age" of Philippine online gambling may be facing a turning point of reshuffling.
