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Online Gaming Overtakes Casino Revenue in 2025, Driven by Regulatory Changes

Online gaming beats casino revenue in 2025 – Electronic and online gaming revenues surpassed traditional land-based casinos in the Philippines in 2025, driven by lower taxes and a POGO ban.

What Happened

In 2025, electronic and online gaming revenues in the Philippines reached P201.12 billion, exceeding the revenue generated by traditional land-based casinos for the first time. This significant shift contributed to the country’s overall gross gaming revenue (GGR) of P396.14 billion for the year, according to the Philippine Amusement and Gaming Corp. (Pagcor). This segment’s revenue saw a substantial 30 percent increase from P154.66 billion in 2024.

Key Details

  • Record Revenue: Electronic and online gaming generated P201.12 billion in 2025, surpassing traditional casinos.
  • Overall GGR: The Philippines’ total GGR for 2025 reached P396.14 billion.
  • Growth Rate: The electronic and online gaming segment experienced a 30 percent revenue increase from the previous year.
  • Tax Reductions: The GGR tax rate for online games was reduced from 55% to 35% in 2024, and further to 30% for online games, according to Buenas PH.
  • POGO Ban Impact: The nationwide ban on Philippine offshore gaming operators (POGOs) redirected investment towards licensed local digital operators.
  • Employment Shift: The industry is seeing a shift in employment needs from traditional casino roles to technology, software management, and other digital services.
  • High Wages: The gambling and betting industry had the highest average wages within the broader arts, entertainment, and recreation sector in 2024, with an average annual salary of P688,750 for its 38,000+ employees.
  • Future Skill Needs: Pagcor has identified IT, finance, customer service, data analytics, cybersecurity, and compliance as areas requiring more skilled workers.

Why It Matters

The dominance of online gaming marks a significant ‘mature, structural evolution’ of the gaming industry in the Philippines, as highlighted by Buenas PH managing consultant Ellen Joy Almanza. This shift not only reflects changing consumer preferences but also demonstrates the profound impact of regulatory adjustments. Lower tax rates have successfully attracted investment into regulated domestic digital gaming operations, while the POGO ban has consolidated the market around local, licensed entities. Furthermore, this trend is reshaping the employment landscape within the sector, creating demand for higher-skilled technology and corporate jobs. As the industry continues to digitalize, there will be an increased need for robust technical and compliance capabilities, indicating a growing sophistication in the market and a potential for sustained economic growth through a regulated digital gaming ecosystem.