It’s been nothing short of a Hollywood arc for gambling in the Philippines over the past few years, but at the end of it all, a sustainable top tier gambling market might just have emerged. 

Gone are the days of allegations of a China-facing empire, with fringe links to organised crime. Instead, the country has found itself in possession of a robust domestic online gambling industry.  

While there are undoubtedly hurdles still to overcome, it’s a remarkable transformation from just a few years earlier. 

Where have we come from? 

For many years, the Philippines hosted a large group of companies under what came to be known as Philippine Offshore Gaming Operator (POGO) licences.  

Either directly licensed via regulator PAGCOR or lightly regulated by several autonomous regions, these operators were pledged not to take wagers from locals, but instead generate revenue exclusively in other markets. 

That created concern that these operators were extracting revenue from China, where almost all forms of online gambling are banned. This fear extended beyond the borders of the industry several times, with geopolitical threats becoming run of the mill, amid fears that some POGO operators had links to organised crime figures within China. 

After years of rolling scandals, political and public pressure finally told on the POGO sector, President Marcos Jr. felt compelled to end it all. The offshore sector was banned in its entirety. 

However, emerging from its ashes in stunning fashion has been an online gambling market focussed solely on Filipinos. 

A demographic previously sidelined in favour of the offshore industry is now set to crest $7bn in revenue in 2025 and counts only Macau as a larger market in Asia. 

What’s happening now? 

Excitement among the gambling industry and its regulators is palpable, but there remain some very real risks to this surprise success story. 

First are the persistent concerns of the group of politicians who accomplished the takedown of the POGO system in the first place. 

Aside from some Senators who are, and always will be, enemies of gambling in its entirety, those with concerns about the sector’s links to organised crime are still not wholly convinced that the rot has been fully extracted following the ejection of the offshore sector. 

In August, 2025 the Philippines Central Bank ordered all banks and wallets to remove direct links to gambling companies, over fears that too many people are getting themselves into debt. 

These challenges will have to be reckoned with by the government and PAGCOR. The scandals that engulfed the previous gambling regulatory regime were more than just hearsay. Proven and prosecuted scandals engulfed numerous senior officials in bribery and modern slavery offences. 

To its credit, PAGCOR is taking steps to try and avoid the same kind of corruption setting in among domestic operators, and its early efforts are being greeted warmly by the legitimate gambling industry. 

These include the introduction of a minimum guaranteed fee that requires operators to pay a minimum amount of money to the state every month and to also report above a set level of gross gambling revenue (GGR). 

The thinking is, those operators which are in the market in order to cover for more illicit gambling activities or are otherwise not serious about running a proper regulated service for Philippines citizens will no longer be able to coast along in the background. 

Any operator that misses five of these GGR targets is automatically investigated and faces losing their license, PAGCOR has said. 

What are the big questions? 

Things may have changed dramatically, but what has stayed the same for many years is the fact that the Philippines is the most compelling online gambling in the world. 

This new era of growth is thrilling for the industry, and the taxman, but it is shockingly fragile and its future is by no means certain.

These are the big questions facing its future: 

Can powerful politicians be convinced that regulated gambling is the way forward? 

It’s plausible that a middle ground could be reached here, where PAGCOR is required to tighten up rules around affordability or other measures that limit gamblers falling into debt, in order to stave off a total ban on online gambling that would ultimately help very few people 

Can PAGCOR make the sector’s life easier by rooting out corruption 

There’s no world in which the very real organised crime figures who had infiltrated the POGO sector have just completely gone away, but with the industry now much more accountable in general, there is much more scope for officials to make life harder for those seeking to take advantage of the market. The better job the regulator does here, the easier it will be to convince a sceptical Congress to get behind the sector. 

When does revenue start to plateau? 

Few people expected the Philippine domestic market to be so explosive, which means that not many people have a good idea of what its upper ceiling is. Eventually, things will start to plateau and then it becomes all about sustainability. Ignoring any potential political hiccups, the operators that succeed in the long term are the ones that build brand loyalty among consumers now. 

Let’s Talk Talent  

At Pentasia, we help iGaming businesses plan and execute talent strategies across complex, fast-moving markets like the Philippines. Whether you’re exploring market entry or building out an existing operation, we’re here to help you find the right people, teams, and structures to succeed.  

Contact Pentasia to discuss your Philippine hiring plans, workforce strategy, or market expansion goals.