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Philippine Gaming Revenue Seen to Fall 7% This Year Amid Stricter Rules, Sluggish Spending
S&P Global Ratings forecasts the Philippine gaming industry to contract by 7% this year due to stricter government regulations and sluggish consumer spending. Clampdowns on online gambling, coupled with inflation-driven household budget pressures, are expected to hinder the industry's recovery.
MANILA, Philippines — The Philippine gaming industry is poised for another difficult year as tighter government rules and sluggish consumer spending curb revenue, leaving only a muted recovery in 2027, S&P Global Ratings said. In a report, S&P projected that the country’s gross gaming revenue (GGR) would shrink 7 percent this year, reversing the 6-percent growth in 2025 and marking the second-steepest decline among seven Asia-Pacific gaming markets covered in its analysis. READ: Philippine gross gaming revenues up 6% in 2025, driven by online platforms The ratings agency said Manila’s tighter oversight of online gambling would dent industry revenue just as elevated inflation continues to squeeze household spending. It added that earlier regulatory measures that favored online gaming—such as lower remittance rates—may also undermine the economics of large-scale investments in brick-and-mortar casinos by shifting activity away from traditional gaming venues. “There has been rapid growth in online gambling gross gaming revenue in the Philippines. However, it recently slowed due to a clampdown on e-wallet linkages,” the report said. “Twenty-fold growth in online gaming between 2022 and 2025 ignited concerns over addiction, prompting sudden restrictions on e-wallet linkages in August 2025,” it added. According to the Philippine Amusement and Gaming Corp. (Pagcor), the local gambling industry’s GGR declined 15.87 percent to P87.6 billion in the first three months of the year. Pagcor Chair and CEO Alejandro Tengco attributed the slump to softer discretionary spending as rising oil prices squeezed household budgets. READ: Pagcor casino privatization to cut healthcare funds by P2.1B yearly The online and electronic gaming sector, which includes e-games, e-bingo, bingo and poker, was the hardest-hit segment as its combined revenues dropped 22.43 percent year-on-year. Meanwhile, licensed casinos were the industry’s largest revenue source with P44.52 billion in GGR, while Pagcor-operated casinos generated P3.17 billion. Despite the weak first-quarter performance, Tengco said he remained optimistic that the industry would rebound once geopolitical tensions ease. INQ
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