PAGCOR has highlighted the success of its modernization strategy amid significant regulatory changes, reflected in strong performance driven by digital transformation.
Despite ongoing debates over the future of online gaming in the Philippines, the regulated sector continues to demonstrate stable growth. The agency reported an almost 50% year-over-year increase in net revenue for the first three quarters of 2025. PAGCOR Chairman Alejandro Tengco called this a clear indication of the positive impact of technology-driven initiatives.
Net revenue reached PHP 14.32bn (≈$243m/£185.4m), up from PHP 9.63bn ($164m) the previous year. Total revenue rose 5.87% year-on-year to PHP 84.09bn ($1.43bn), of which PHP 75.93bn ($1.30bn) came from gaming operations.
Following the full implementation of the POGO ban in early 2025, uncertainties remained over the future of the Philippine gaming sector. However, the latest financial results indicate a smooth transition to a new market structure. The country’s land-based sector also emerged strong from political instability, achieving a new level of player engagement.
PAGCOR is also actively modernizing the casino sector, adapting the overall betting landscape to a post-POGO environment. Notably, the agency has started to reap the benefits of significant investment in slot machines, acquiring 1,968 units from supplier RGB International Bhd.
“Our financial performance clearly reflects PAGCOR’s renewed focus on governance, digital transformation, and sustainable, responsible gaming,” Tengco noted.
While PAGCOR-licensed operators continue to prosper, the industry’s future remains uncertain. The Senate Committee on Games and Amusement is considering several bills calling for a total ban on online gaming, citing the “silent epidemic” of gambling addiction in the Philippines. Industry representatives, including Tengco, have warned that such a ban could push players toward illegal operators and deprive the government of revenue.
Additionally, in seeking to restore sector stability, Keith McDonnell, Director at KMI Group, emphasized the importance of a careful, measured approach by lawmakers. McDonnell stated:
“The Philippines now needs time to carefully consider how a regulatory framework and effective tax system can deliver long-term benefits to the local economy while protecting the most vulnerable. Everyone knows a complete ban for [land-based operators] would drive activity underground, causing new social, economic, and political problems.”
Thanks to strong financial results in 2025, PAGCOR’s contribution to nation-building increased by 11% to PHP 59.6bn ($1.02bn). Two-thirds of this went to the National Government as mandated by Presidential Decree 1869, while the remainder was allocated to taxes and various government funds and initiatives.
“Every peso PAGCOR earns is returned to the community through schools, health facilities, disaster response programs, and other social projects,” Tengco said. “We aim to sustain this growth while ensuring the gaming industry continues to operate responsibly and contribute to national development.”
Progress on the relevant bills stalled in September after reports emerged that funds intended for flood relief projects were misappropriated for casino gambling nationwide, prompting leadership changes in the Philippine Senate. As a result, the bills have remained pending in the Committee since their submission in July.
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