The Influence of Online Casinos on the Financial Growth in the Philippines
Online gambling has become one of the leading industries that seriously boosts the Philippine economy. Since 2024, the gross gaming revenue (GGR) from this sector has set new records and is expected to rise further until the end of 2025 and the beginning of 2026. Meanwhile, electronic gaming expands, and integrated resorts also mark significant growth.
These processes lead to fiscal development, increase job opportunities, and improve the overall economic boost. The online gaming sector not only influences the country’s revenues but also helps develop other sectors of the economy, leading to a more prosperous and stable local economic environment.
Major Market Setup and Regulatory Shift
A significant shift in the regulation of the online gaming sector came in 2024, when the government banned all offshore operators (POGOs). The subsequent cancellation of the remaining offshore licenses followed this. With these steps, the local regulator PAGCOR aimed to establish better gambling regulations and boost the regional sector.
Now, with the newly established environment, the government wants to increase the potential of the gaming sector. Although some providers, like 888casino in the Philippines, are still preferred by many local gamblers, the new tendencies aim to restructure the business and give it a new direction.
Now, PAGCOR’s Philippine Inland Gaming Operator (PIGO) model permits licensed land-based establishments to offer online play to registered local players – distinct from POGOs, which targeted offshore markets and are now shut. All these measures aim to tighten the oversight of online gambling and to increase the income from domestic e-gaming and integrated resorts.
Direct Fiscal Contribution
With all the legal changes and regulatory adjustments, the country has managed to reach a point where the revenue momentum is stable and there are larger public revenues. According to official PAGCOR reports, the online gambling sector has reached a record GGR for 2024 and is expected to grow by the end of 2025. The predictions are that revenues from electronic gaming reach ₱450 – ₱480 billion.
Taxes, License Fees, and PAGCOR Dividends Flowing to the National Treasury
Several primary channels drive revenue flow to the state treasury. One is from the licenses and the regulatory fees collected from casinos, e-games, and e-bingo. Another one is from the different gambling-specific taxes required by the gambling laws. The other part of the revenues comes from PAGCOR’s annual dividends.
Employment & Local Value Chains
Among the most significant benefits of developing the online gaming sector in the Philippines is creating more job opportunities for locals. Online gaming operators need skilled professionals like developers, designers, customer support agents, etc. Moreover, gaming helps create jobs in related industries such as payment processing, financial management, telecommunications, and cybersecurity.
The regulated gambling activities in the country allow for employment across various operations related to compliance, risk management, live dealer studios, etc. At the same time, PAGCOR continues to prioritize creating new jobs in the gaming resorts and the iGaming sector. Slowly, the development of the licensed local iGaming sector starts to positively influence the employment rates despite the contraction of offshore gaming activities.
Impact on Real Estate, Tourism, and Entertainment
Some of the main sectors that are indirectly influenced by the growth of the iGaming industry in the country are tourism, entertainment, and real estate. The local resorts welcome more and more regional visitors. The government prioritizes more potential resort projects and expansions to create more jobs and establish sustainable sector development.
On the digital side, the iGaming growth leads to demand for studio space, data centers, connectivity, and specialized vendor services. For instance, live-dealer studios and streaming facilities need strong internet connections and secure locations, which leads to the demand for office space and shared facilities.
Meanwhile, resorts boost their impact by attracting gambling fans who spend on accommodations, food, entertainment, and shopping. As electronic games have become PAGCOR’s most significant revenue source in recent years, presumably, more investments have shifted toward digital gaming. At the same time, resorts continue to attract tourists and casino lovers who spend and boost the regional economy.
Where the Money Flows
The money that goes to the government is not only from online gaming activities but also from other directly or indirectly connected sectors. This forms a favorable symbiosis between industries that rely on each other. Here are some of the major sectors that are tied to gambling that boost the local revenues.
- Dividends to the State: Local gambling regulator PAGCOR generated ₱12.67 billion (75% of 2024 net income) to the Treasury in May 2025, which is above the 50% statutory floor.
- Taxes and Fees: As revenues from offshore GGR taxes have been eliminated with the ban of offshore operators, cash collections now concentrate on domestic license fees and taxes tied to e-games/e-bingo and resort operations.
- Wages and Services: Regulated operators tied to land-based and iGaming activities spend on compliance measures, IT services, studio production, security, and marketing services.
- Development of Tourism: Integrated resorts bring tourists and gambling fans, which leads to generating revenues from entertaining activities and retail. This increases local tax revenues and leads to the creation of more jobs.
- Real Estate and Infrastructure: Live studios and back-office operations expand demand for offices, data centers, and infrastructural connectivity in bigger cities and areas home to gambling hubs.
- Regulations: With the ban on offshore operators, most resources have been navigated toward supervision and control over illegal operators – public spending that, in turn, safeguards the compliant market’s contribution.
Conclusion: Growth Opportunities
The outlook for the next few years is positive, but risks remain. PAGCOR expects gaming revenue to keep growing in 2025 and 2026, thanks to the rise in electronic gaming and steady resort performance, providing more government funds.
However, continued growth depends on successfully managing casinos, building the necessary infrastructure, and maintaining clear licensing and regulatory rules. Key risks include economic slowdowns, illegal gambling, and payment system issues. Ongoing investment in responsible gambling and proper regulation will be crucial for long-term growth.