Decline in consolidated gaming revenue in the Philippines reported for Q2 of 2025, amounting to US$778 million, representing a 10.6% drop.
In the first half of 2025, the Philippines' commercial casino sector generated gross gaming revenues (GGR) of Php93.4 billion (US$1.65 billion), according to information reported by the gaming regulator PAGCOR. However, a recent decline in GGR indicates current challenges for the country's licensed casinos.
Ben Blaschke of Inside Asian Gaming reported that the combined GGR of the Philippines' licensed casinos fell by 10.6% quarter-on-quarter to Php44.1 billion (US$778 million) in Q2. This reduction signals weakening market demand within the commercial sector.
Alejandro Tengco, Chairman and CEO of PAGCOR, spoke about the significant role the country's Integrated Resorts (IRs) play in driving tourism during a welcome address at the Philippine Hotel Connect 2025. However, the IRs' contribution to the local gaming industry's revenues decreased in Q2 compared to the first six months of the year.
The market share of IR casinos declined from 47.3% in Q1 2025 to about 43.4% in H1 2025. This is partly due to the contraction of the VIP gaming segment, driven by the government’s crackdown on Philippine Offshore Gaming Operators (POGOs), which has reduced high-stakes international VIP play.
Domestic online gambling, such as electronic games (eGames), is growing and altering the revenue balance, diminishing the dominance of traditional commercial casinos. Consumer groups and regulators are pushing for stricter regulations on online gambling to curb associated risks like fraud, identity theft, and illegal activities. This includes proposals for enhanced Know Your Customer (KYC) protocols, transaction monitoring, and closer coordination between fintech companies and law enforcement.
Broader market demand challenges and tighter regulation contribute to operational uncertainties, as reflected in earnings reports of gaming companies that note resilience but also slight revenue shortfalls due to these factors.
In summary, the Philippine commercial casino sector in Q2 2025 is grappling with decreased GGR amid a shrinking VIP segment, increased competition from domestic online gambling, and an evolving regulatory environment demanding stronger controls and oversight. The IRs, which had previously contributed significantly to the local gaming industry's revenues, now face notable challenges in maintaining their market share and revenue generation.
Casino-and-gambling activities experienced a decline in Q2 2025, as the combined gross gaming revenues (GGR) of the Philippines' licensed casinos fell by 10.6% compared to the previous quarter. This decrease raises concerns for casino operators as they navigate through shrinking VIP segments and growing competition from domestic online casino-games like electronic games (eGames).
