Key Moments:
- Finance Secretary Ralph Recto has voiced opposition to a total online gambling ban and backed tighter regulations for the sector
- PAGCOR reported a 49 percent increase in net income to PHP 14.32 billion (€227 million) from January to September 2025
- Recent restrictions on e-wallet connectivity led to decreased player activity and a notable revenue decline since August 2025
Policy Debate Intensifies Over Online Gambling Oversight
The discussion about the future of online gambling in the Philippines has taken center stage, with Finance Secretary Ralph Recto making it clear that his department does not support a sweeping ban. Instead, he contended that the implementation of stricter regulations could better harness economic benefits while addressing negative impacts. This stance emerged during a period of heightened legislative scrutiny, following renewed calls to outlaw online gaming amid increased rates of fraud, cyber-scams, criminal involvement, and related illegal activities.
Concerns about consumer risks in the sector mounted after authorities conducted headline-grabbing raids on offshore gaming sites. Lawmakers and critics believe online platforms may contribute to addiction, facilitate illicit financing, and blur the distinction between entertainment and crime.
Regulation Viewed as Economic Safeguard
Secretary Recto maintained his support for “net benefit impact” through responsible management of the sector. He noted that a detailed cost-benefit analysis by the Department of Finance recommended tighter oversight across electronic gaming categories such as e-games, e-bingo, and other grantees, instead of outright bans. He stated, “The DoF’s position is that the industry can have a net benefit impact on the economy if certain negative externalities are controlled through more stringent regulations,” as quoted.
The Philippine Amusement and Gaming Corporation (PAGCOR), acting as the industry regulator, has consistently opposed full prohibition. Its officials argued that eliminating legal platforms would drive bettors to illegal or foreign-operated alternatives, increasing exposure to scams while reducing government revenue. PAGCOR highlighted the importance of social contributions and anti-crime controls maintained by law-abiding operators.
Financial Performance and Impact of Regulation
PAGCOR released data on November 3, 2025, showing its net income climbed to PHP 14.32 billion (€227 million) in the period from January to September, up 49 percent from PHP 9.63 billion (€153 million) in the corresponding stretch last year. Total revenue reached PHP 84.09 billion (€1.33 billion), primarily fueled by contributions from land-based gaming, which brought in PHP 75.93 billion (€1.20 billion). Other related activities contributed PHP 8.16 billion (€129 million).
| Period | Net Income | Total Revenue | Land-Based Gaming Revenue | Other Sources |
|---|---|---|---|---|
| Jan-Sep 2025 | PHP 14.32 billion (€227 million) | PHP 84.09 billion (€1.33 billion) | PHP 75.93 billion (€1.20 billion) | PHP 8.16 billion (€129 million) |
| Jan-Sep 2024 | PHP 9.63 billion (€153 million) | PHP 79.43 billion (€1.26 billion) | Not specified | Not specified |
The sector, however, faced operational headwinds following the removal of e-wallet payment capabilities from online platforms. This regulatory move caused a steep decline in player transactions starting in August 2025, resulting in lower income projections for the remainder of the year and slowing new account sign-ups. PAGCOR confirmed these downturns and noted that diminished ease of payments has materially affected the market.
Upcoming Legislative Decisions and Industry Outlook
Amid these disruptions, officials are preparing for developments in regulation. The House of Representatives’ Games and Amusements Committee intends to present a consolidated bill before year-end, which will address whether to introduce stricter rules or issue a complete ban on online gambling. Meanwhile, business stakeholders and economists have cautioned that excessive restrictions risk draining investment and pushing operators underground.
President Ferdinand Marcos Jr. has committed to addressing the matter thoughtfully, resisting swift action even as public frustration with scams increases political pressure. The administration remains focused on striking a balance between safeguarding consumers and securing economic advantages from the sector.
- Author
Daniel Williams
