The Philippine Statistics Authority (PSA) recently released data showing that in June 2025, the arts, entertainment, and recreation industry lost 218,000 jobs, marking the largest monthly unemployment drop in recent years. Officials pointed out that the continuous shrinkage of the gambling industry is the main cause of this unemployment wave.
The gambling industry was once the backbone of the Philippine entertainment industry, but now it has entered a cold winter. Several large casinos and gaming centers reported a significant decrease in customer flow and betting activity, increasing operational pressures, and have consequently started layoffs, reduced operating hours, or even suspended some operations. Among these, the shrinkage of the POGO (Philippine Offshore Gaming Operators) sector is the most noticeable, with businesses that relied on overseas customers facing severe losses.
The downturn in the industry quickly affected peripheral areas, including performers, hotel catering, security services, and accommodation reception-related positions. Industry insiders describe, "The entire entertainment ecosystem is like being deprived of oxygen," from dealers to cleaners, stage lighting staff, many are forced to look for other paths.
Experts believe that the cooling of the gambling industry this round is mainly caused by the superposition of three major factors:
• Slow recovery of international tourists post-pandemic, with Philippine tourism traffic not yet returning to normal levels;
• Government strengthening regulation, cracking down on illegal gambling and money laundering activities, with compliance costs rising;
• The local economy tightening, with people's disposable income decreasing, leading to a decline in leisure and entertainment spending.
The Philippine Department of Labor has issued a warning about this, promising to provide career transition assistance and emergency aid. Meanwhile, the gambling regulatory authorities are also studying countermeasures, seeking policy support to stabilize industry operations.
It is worth noting that as one of the important sources of foreign exchange for the Philippines, the continuous shrinkage of POGO business may trigger a broader economic and social chain reaction. Whether the current low tide in the gambling industry is just a short-term adjustment is still hard to determine, but there is widespread concern in the industry that the Philippines is facing a deeper structural transformation challenge.
