The Philippine gaming regulatory body PAGCOR recently admitted that the total gaming revenue in 2025 is likely to be roughly the same as last year, "the main reason being the slow recovery of tourist numbers". Chairman Tengke revealed during a Senate hearing break that the total industry gaming revenue last year was about 400 billion pesos, a slight increase from 2024, but far from expectations. Currently, they are pinning their hopes for recovery on the visa-free policy for tourists from China and India— "Who knows? Visa-free might bring a new wave of tourists." Meanwhile, the central bank's ban on removing gambling links from electronic wallets is still fermenting, and the prospects for online business are equally bleak. Want to keep up with the latest on Philippine gaming regulations? Remember to lock in the professional tracking on the PASA official website.
Weak tourist numbers drag down casino performance, is visa-free a "quick fix"?
According to the Ministry of Tourism data, the number of inbound tourists in 2025 was only 6.48 million, a slight increase of 0.76% year-on-year, which is far from the pre-pandemic level. Due to the high dependence of VIP rooms and high-net-worth players on international traffic, stagnant inbound numbers directly led to stagnant revenue for physical casinos. Tengke stated at the hearing: "Visa-free is still waiting for a decision, but if it can be implemented, it will definitely stimulate traffic." PAGCOR is cooperating with the Ministry of Tourism to promote the visa-free policy for citizens of China and India, trying to use the recovery of the tourism industry to feed back into the gaming industry.
Online gaming regulation tightens: tens of millions of active players, impact of link removal still to be assessed
Although PAGCOR data shows that registered online gaming users have surged to 32.12 million, four times that of 2024, Tengke clarified that the actual monthly active players are about 10 million. Senator Gachalian expressed concerns about "more than half of adults involved in gambling," while PAGCOR is focusing on cleaning up illegal operators. Currently, the central bank's order to remove embedded gambling links from all electronic wallets and banking apps is still in effect, and PAGCOR is preparing to submit a policy recommendation to the central bank to assess whether it is possible to revoke or adjust the ban. Tengke admitted: "We are still observing the long-term effects, and online revenue is conservatively estimated to be flat."
Tax rate controversy and legislative priority: Marcos government sets the tone for gambling
Economic reform coordinator Sta. Ana III publicly suggested that the gambling tax rate should be increased to curb gambling demand, emphasizing that "the main purpose of taxation is not to make money, but to discourage gambling." However, this stance is in tension with PAGCOR's goal of expanding the scale of legal gambling. Meanwhile, President Marcos has listed online gambling-related legislation as a priority for the Legislative-Executive Development Advisory Council (LEDAC), meaning that a more systematic regulatory framework may emerge within the next year. Whether to continue relying on tourists or to transition to a domestic market, the Philippines is at a policy crossroads.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel:https://t.me/pasa_news
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