The Philippine gaming industry is undergoing a significant structural transformation, with a clear trend of players moving towards online platforms. The latest data from the Philippine Amusement and Gaming Corporation (Pagcor) shows that the total gaming revenue for 2025 has decreased by 5.1% year-on-year, dropping to 1060.3 billion pesos from 1117.2 billion pesos in 2024. However, it is noteworthy that Pagcor has achieved a 4.2% increase in net profit year-on-year, reaching 17.47 billion pesos, demonstrating the industry's resilience in "shifting gears" rather than "stalling." Relevant digital transformation compliance cases in the Philippine gaming industry can be referenced on the PASA official website.
Revenue Structure Diversification: Online Surge, Physical Decline
The core characteristic of the Philippine gaming industry in 2025 is the "polar opposites" of online and offline businesses:
Online business becomes the core support: Digital segments such as electronic gaming, online gaming, and electronic bingo for the first time contribute more than half of the revenue, reaching 533.3 billion pesos, a year-on-year increase of 9.3%, successfully underpinning the overall revenue;
Physical business significantly declines: Pagcor-operated casino revenues plummet by 18%, only amounting to 10.38 billion pesos; licensed integrated resorts and private casinos also see a 4.9% decline, dropping to 314.4 billion pesos. Pagcor Chairman Tengko openly states that player behavior has undergone irreversible changes, "more and more people prefer to click on their mobile phones rather than walk into a casino hall."
Key Influencing Factors: Offshore Gaming Exit + Cost Optimization
The contrast between the decline in total revenue and the increase in net profit is due to the combined effect of two core factors:
Complete exit of offshore gaming (POGO): The POGO segment, which still contributed nearly 3 billion pesos in revenue in 2024, saw its revenue drop to zero in 2025 due to the full effect of government bans, becoming a significant reason for the overall revenue decline;
Continuous improvement in operational efficiency: Facing market changes, Pagcor actively compresses costs and optimizes operational processes, achieving a counter-trend increase in net profit, reflecting strong business resilience.
Regulatory Upgrade and Fund Allocation: Compliance and Public Welfare Go Hand in Hand
During the industry transformation process, regulatory adjustments and fund allocation always maintain a stable direction:
Regulatory Focus on Online Compliance
Pagcor has simultaneously upgraded the digital gaming regulatory framework, focusing on player protection and transparency, not only making online gaming "convenient" but also "safe," adapting to the new industry landscape dominated by online business.
Fiscal Contribution and Public Welfare Allocation
The national fiscal pillar status remains unchanged: In 2025, Pagcor's total contribution to national construction reaches 66.95 billion pesos, of which 45.19 billion pesos are remitted to the national treasury (accounting for 50% of the statutory government share), with an additional 4.76 billion pesos in franchise taxes and 907 million pesos in corporate income taxes paid to the national tax bureau;
Public welfare allocation covers a wide range: Funds continue to flow to various sectors, including 2.26 billion pesos to the Philippine Sports Commission, 12.77 billion pesos to the Presidential Office's social welfare projects, and renewable energy trust funds and related local governments.
Overall, the Philippine gaming industry has bid farewell to the "reliance on physical" old model, clearly moving towards a new stage dominated by online and digitalization, although the path of transformation still poses challenges, the direction of development is clearly visible.
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This article is from "PASA-Global iGaming Leaders" gaming news channel:https://t.me/pasa_news
Original in-depth gaming channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
