The Gross Gaming Revenue (GGR) in the Philippines is anticipated to decrease by 7% this year, a sharp reversal from the growth seen in 2025. This decline is attributed to heightened regulations on online gambling, according to Standard and Poor's (S&P) Global Ratings.
Impact of Regulatory Changes on Gaming Revenue
When rapid industry growth triggers public outcry, legislators often respond with high-impact policy U-turns to maintain social order.
Standard and Poor's Global Ratings
- GGR grew by 6% in 2025 but is now set to contract due to regulatory crackdowns.
- Public concerns about gambling addiction prompted new restrictions on e-wallets linked to online gambling.
The S&P report, released on July 28, indicates that the government's swift actions to regulate the industry were prompted by a surge in online gambling, which reportedly expanded twenty-fold between 2022 and 2025. This growth raised alarms over gambling addiction, leading to the Bangko Sentral ng Pilipinas (BSP) mandating that electronic wallet providers sever ties with online gambling platforms.
In contrast to S&P's outlook, the Philippine Amusement and Gaming Corporation (PAGCOR) projects an even steeper drop of 19% in revenue for the year. In the first quarter of 2026, GGR already fell by 15.87% to P87.6 billion.
PAGCOR Chairman Alejandro H. Tengco suggested that challenges in consumer spending, exacerbated by ongoing geopolitical tensions, could further dampen earnings. However, he also expressed optimism for a possible recovery in the second half of the year, should oil prices stabilize.
Looking ahead, S&P predicts a modest recovery, estimating a 2% revenue growth by 2027. Yet, the report warns that the crackdown on online gambling may hinder large investments in physical casino developments, as regulatory conditions become more favorable for online operations.
Despite the call for a total ban on online gambling, PAGCOR maintains that the sector can be effectively managed through proper regulation and compliance measures. This debate continues as the industry navigates the complexities of public sentiment and regulatory frameworks.