By Mhicole A. Moral, Special Features and Content Writer
Technological advancements and the growing accessibility of mobile devices have created new opportunities for social interaction and entertainment. Electronic games are one of these opportunities, which have increasingly become embedded in modern Filipino society.
The rapid growth of online gaming has disrupted the gambling industry and become the largest contributor to gaming taxes in the Philippines since early 2024. In fact, The Philippine Amusement and Gaming Corp. (PAGCOR) reported that its net operating income surged 51% to P84.97 billion in 2024, up from P56.38 billion in 2023. Electronic games and e-bingo generated P48.79 billion, making up 50.03% of PAGCOR’s total gaming revenues. In addition, a recent Morgan Stanley report found that online gaming accounted for 70% of the country’s land-based gross gaming revenue (GGR) by the third quarter of 2024 — up from 40% in the first quarter and 60% in the second.
Gaming operations and license fees remained PAGCOR’s top revenue sources at P97.52 billion, while business income and service fees added P14.2 billion. Although e-gaming led the sector, licensed casinos contributed P33.07 billion, and Casino Filipino venues added P12.67 billion.
PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco expects e-games to keep growing as technology becomes an even greater part of people’s entertainment habits.
“This impressive performance is a strong indication that the use of modern technology and mobile gadgets in gaming and amusement will continue to play a pivotal role in shaping the future of gaming,” said Mr. Tengco.
Reinventing online games
The rise of electronic gaming has taken even the country’s biggest casino operators by surprise, forcing them to adapt to an increasingly digital landscape. Solaire Resort & Casino has started recruiting for its online gaming team, while NUSTAR Resort and Casino launched NUSTAR Max, its official online gaming platform.
Among the biggest industry players in e-gaming is DigiPlus Interactive Corp. The company overtook Bloomberry in both GGR and earnings before interest, taxes, depreciation, and amortization (EBITDA) in the second quarter of 2024. It now holds a 50% market share, leveraging its over 40 million registered users out of a total adult population of 70 million.
Expanding internationally, DigiPlus secured a license to operate in Brazil. Its stock price surged from P7.93 per share in early 2024 to P28.95 by January 2025, making it one of the year’s best-performing stocks.
According to DigiPlus Chairman Eusebio Tanco, the Philippine online gaming industry is experiencing growth because of improved gaming technologies. “More Filipinos are embracing online gaming and sports betting as part of their entertainment choices,” he told BusinessWorld in an e-mail.
He credited the sector’s momentum to a well-regulated environment that ensures fair play and responsible gaming. Regulatory bodies provide both players and operators with a secure and transparent platform.
Unlike some of its Southeast Asian counterparts, the Philippines has built a structured and transparent regulatory framework for online gaming. “The Philippines stands out as one of the most structured online gaming markets in Southeast Asia, with clear regulations that provide both stability and growth opportunities,” Mr. Tanco explained.
He noted that the shift from traditional media to interactive gaming reflects global trends, as audiences seek dynamic, participatory experiences instead of one-way content.
“Online gaming has transformed entertainment by shifting consumer habits from passive content consumption to interactive, social, and immersive experiences,” Mr. Tanco said. “Filipinos are increasingly engaging with digital gaming platforms, real-time sports betting, and livestreamed games, making gaming a mainstream form of entertainment.”
Investment boom in online gaming
The DigiPlus executive added that investment opportunities in the sector are strongest in technology-driven innovations, personalized gaming experiences, and digital infrastructure expansion.
Furthermore, one of the most significant trendne of the most significant trends in the Philippine online gaming landscape is the integration of artificial intelligence (AI). AI-powered gaming platforms enhance user engagement by offering personalized recommendations and adaptive gameplay. Developers use machine learning algorithms to analyze player behavior, delivering customized content that keeps users engaged.
Data analytics also refine gaming experiences, as companies collect and analyze player data to understand preferences and habits. This approach allows them to create more engaging content and offer targeted in-game promotions.
“Investors are looking at AI integration, enhanced mobile gaming platforms, and data-driven player engagement to improve user experience. With a growing market and a clear regulatory framework, the Philippines remains an attractive destination for sustainable investments in digital gaming,” Mr. Tanco said.
Strengthening regulations
Despite the industry’s rapid expansion, concerns over responsible gaming have pushed stakeholders to enforce stricter safeguards.
Last year, PAGCOR blocked 5,793 of the 7,747 identified illegal gaming sites to curb illicit online gambling. These sites accounted for 74.78% of detected illegal operations, including offshore gaming platforms, unregulated e-sabong, and unauthorized games spreading through social media ads, mobile apps, and spam messages.
However, thousands of illegal sites remain active. PAGCOR Senior Vice-President for Security Monitoring Ret. Gen. Raul Villanueva said combatting these entities goes beyond website blocking, requiring sophisticated strategies to disrupt their financial transactions.
PAGCOR has partnered with major local financial platforms such as GCash and Maya, which have committed to tracking and eliminating illicit transactions. The agency has also urged tech giants, including Google Play and Apple App Store, to remove illegal gambling applications from their platforms.
While these efforts have led to a reduction in Facebook advertisements promoting illicit gaming, operators have shifted their activities to alternative platforms such as Telegram.
PAGCOR estimated that unregulated gaming causes economic losses of P200 billion to P250 billion. Without oversight, these revenues evade government taxation, benefiting only illegal operators.
In addition, the ongoing Senate discussions on the Anti-Online Gambling Act aim to create a more structured and transparent online gaming industry in the Philippines. Proposed measures include stricter licensing requirements, stronger regulatory mechanisms, and enhanced consumer protections to prevent addiction and financial exploitation.
Meanwhile, DigiPlus has reinforced significant steps to reinforce consumer protection. “Responsible gaming is a priority for us at DigiPlus,” said Mr. Tanco. “Our platforms, including BingoPlus, ArenaPlus, and GameZone, adhere to strict KYC (Know Your Customer) protocols, requiring government-issued IDs to verify a player’s identity and age.”
DigiPlus has also implemented self-defined deposit, bet, and loss limits, allowing players to manage their gaming activity responsibly. The company offers self-exclusion programs and real-time responsible gaming reminders to prevent excessive gambling.
Beyond internal policies, DigiPlus collaborates with PAGCOR and mental health organizations to strengthen responsible gaming measures.
“As gaming preferences shift toward more interactive and socially connected experiences, the market will see increased demand for digital platforms that offer both entertainment and responsible engagement,” said Mr. Tanco.
