For the first time in history, digital wagering has overtaken physical establishments in the Philippines. Full-year 2025 data from PAGCOR reveals that electronic and online gaming now account for 50.77% of the nation’s total gaming revenue, signaling a permanent change in consumer habits across the Asian market.
Electronic Gaming: The New Engine of Growth
While the broader industry saw a modest 6.39% overall rise to P396.1 billion ($6.6 billion), the digital sector was the clear standout. Electronic gaming, including e-bingo and online poker, generated P201.12 billion, marking a staggering 30% increase from 2024.
PAGCOR Chairman and CEO Alejandro Tengco noted the significance of this transition and commented on the data:
“The increase in electronic gaming revenues shows how the industry has evolved. Online gaming is no longer a supplementary segment but has now become the leading driver of overall GGR growth.”
The Retail Slump and Operator Pivot
Conversely, traditional venues are struggling to regain their pre-pandemic momentum. Revenues from licensed casinos fell nearly 10%, while PAGCOR-operated casinos saw a 21% year-on-year drop. This decline is largely attributed to a decrease in VIP revenue and a shift in domestic preferences.
In response, major physical operators are racing to launch digital counterparts. Tiger Resort (Okada Manila) has confirmed plans for Okada Play, while the New Coast Hotel Manila recently secured an Electronic Games Operator license. This regulated growth is being fueled by a massive government crackdown on the black market, a move that neighboring Malaysia is being urged to emulate.
Analysts estimate that Malaysia’s unregulated market drains over RM5 billion in annual tax revenue, a figure the Philippines is successfully recapturing through its digital-first licensing framework.
