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Philippines Hits Record Gaming Revenue in 2024, iGaming Sector Emerges as Key Growth Driver

Online gambling in the Philippines has reached unprecedented heights, posting a record gross gaming revenue (GGR) of Php372.33 billion (US$6.5 billion) in 2024, according to data released by the Philippine Amusement and Gaming Corporation (PAGCOR). This remarkable achievement represents a 30.52 percent increase from the Php285.27 billion (US$4.97 billion) recorded in 2023, signaling robust growth despite regional economic challenges.

The stellar performance comes at a pivotal moment for the Philippine gaming landscape, which has undergone significant regulatory shifts including the controversial ban on offshore gaming operators implemented at the end of 2024. Industry experts note that this record-breaking revenue was achieved without contributions from these formerly lucrative offshore operations, highlighting the strength of the domestic gaming ecosystem.

"This GGR feat underscores the crucial role of licensed casinos in sustaining the growth momentum of the Philippine gaming sector," said PAGCOR Chairman and CEO Alejandro H. Tengco. "They remain as our biggest revenue drivers and a major source of government funding for socio-civic programmes."

iGaming Emerges as Revenue Powerhouse

While traditional land based casinos continue to form the backbone of the Philippine gaming industry, the most dramatic growth came from the iGaming and e-bingo segment. This digital gaming sector generated Php154.51 billion (US$2.69 billion) in 2024, representing an extraordinary 165.66 percent increase from the Php58.16 billion (US$1.01 billion) recorded in 2023 (Online slots still remain one of the most popular casino games played)

Industry analysts attribute this explosive growth to several factors, including improved internet infrastructure across the archipelago, increasing smartphone penetration, and the pandemic accelerated shift toward digital entertainment options. The sector's performance also reflects PAGCOR's strategic pivot toward regulated online gaming following the exit from the Financial Action Task Force (FATF) "grey list," which significantly boosted international confidence in the Philippine regulatory framework.

Regulatory Landscape in Transition

The decision to ban offshore gaming operators, commonly known as POGOs, marked a significant policy shift that has reshaped the industry. The ban came after years of controversy surrounding these operations, including concerns about money laundering, tax evasion, and various criminal activities allegedly linked to some POGO establishments.

"The transition away from offshore gaming operations toward a more domestically focused model has been challenging but necessary," explains Maria Santos, a Manila-based gaming industry consultant. "What we're seeing now is that the regulated domestic market, particularly in the iGaming space, has more than compensated for any revenue gaps left by the POGO exodus."

This regulatory recalibration has coincided with increased interest in legitimate online gaming licenses. According to Chairman Tengco, applications for such licenses surged following the Philippines' removal from the FATF's grey list, reflecting growing international confidence in the country's anti-money laundering frameworks.

Future Outlook: Competition and Innovation

As the Philippine gaming sector continues to evolve, industry observers point to increasing competition, particularly in the online space. A recent industry panel suggested that a market shakeout is likely to follow the current growth phase, with only the most innovative and compliant operators surviving in the long term.

The Clark Freeport Zone, long a hub for gaming operations, is seeing continued development despite growing competition. Meanwhile, major players like Okada Manila parent Universal Entertainment have announced new management structures to adapt to the changing landscape.

To Conclude:

The record-breaking performance of the Philippine gaming industry in 2024 demonstrates remarkable resilience and adaptability in the face of significant regulatory changes. With iGaming emerging as a powerful growth engine and traditional casinos maintaining their position as revenue anchors, the sector appears well-positioned for sustainable expansion.

However, challenges remain. The implementation of new taxes, such as the 12% VAT on Steam purchases effective June 2025, signals a broader government interest in capturing revenue from digital entertainment platforms. Additionally, the competitive landscape continues to intensify, with both domestic and international operators vying for market share.

As PAGCOR continues to refine its regulatory approach and the industry adapts to post-POGO realities, the Philippine gaming sector's ability to balance innovation with compliance will likely determine whether it can maintain its impressive growth trajectory in the years ahead.

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