The Philippines is a key player in Southeast Asia's online iGaming market, being the only regulated iGaming jurisdiction in the region. Since the legalization of gambling in 1976 under the Philippine Amusement and Gaming Corporation (PAGCOR), the country has developed into a vibrant gambling hub. With a population of over 100 million, a deep-rooted gambling culture and a robust regulatory framework, the Philippines is well-positioned to become one of iGaming’s next big markets.
Market Growth
2023 was a breakthrough year for the Philippine gaming industry. Earlier this year, at the ICE London conference in February, Philippine Amusement and Gaming Corporation (PAGCOR) chairman Alejandro Tengco announced their 2023 online gaming figures, where revenue reached a record USD $1.04 billion. This represents nearly double the previous year’s total and online gambling alone contributed 20.4% of this figure.
Looking ahead, according to Statista, the iGaming market is expected to generate USD $680 million this year, with a projected annual growth rate of 5.40% through 2028. The first half of 2024 was particularly strong, with Gross Gaming Revenue (GGR) reaching USD $3.34 billion, representing a 19.2% increase from the same period in 2023.
With these figures, it comes as no surprise that the Philippine iGaming market stands out within Southeast Asia and holds enormous potential.
Key Verticals
Regulated iGaming in the Philippines includes online games, bingo, specialty games and sports betting, where several sectors dominate over the others. In early 2024, licensed casinos led the charge, accounting for 50.95% of the total GGR. E-Games followed closely with 32.36%, while bingo operations and PAGCOR-operated casinos contributed 4.88% and 4.57% respectively.
Furthermore, a 2022 survey conducted by TGM showcases Filipinos’ gambling habits, showing that 41.5% engage in lottery and games of chance such as Powerball and bingo, and 38.9% have bet on sports in the past 12 months. This widespread participation reflects the rich culture and significant economic impact of gambling in the Philippines.
Regulatory Landscape and POGO Ban
PAGCOR is a government-owned corporation that regulates and licenses all gambling activities, from land-based casinos to online platforms like e-bingo, but also operates the Casino Filipino chain, with eight main branches nationwide.
PAGCOR is the third-largest revenue contributor to the Philippine economy. The regulatory environment is evolving, with PAGCOR’s decision to ban Philippine Offshore Gaming Operators (POGOs) by year-end in response to controversies surrounding them. POGOs are online gambling operators based in the Philippines that offer services to customers outside the country, which have contributed over USD $360 million between 2016-2019.
Despite this ban, PAGCOR remains a central player in ensuring a well-regulated and thriving gambling industry.
Affiliate Strategies for the Philippine iGaming Market
Affiliates looking to enter the Philippine iGaming market should focus on understanding their target audience. While English is one of the national languages of the Philippines and is widely spoken by millions, catering to local preferences can help you stand out. For example, using Tagalog and other regional dialects in campaigns can add a personal touch. In addition, promoting key betting markets like basketball and eSports will ensure your audience remains engaged.
With most Filipinos accessing content via smartphones, promoting mobile-optimized operators will ensure better reach. Finally, payment flexibility is crucial, so affiliates should partner with brands that support widely used methods like GCash, PayMaya, and bank transfers, as well as emerging options like cryptocurrency.
The Potential of the Philippine iGaming Market
The Philippine iGaming industry is set for further growth with new regulatory changes. Starting January 1st, 2025, PAGCOR will reduce gaming license fees for land-based operators from 35% to 30%, and to 25% for resort operators offering iGaming. Additionally, the tax on Gross Gaming Revenue (GGR) was cut from 55% to 35%, easing financial pressures on operators. PAGCOR also plans to enter the online gambling market with the launch of its first online casino, CasinoFilipino.com.
With no clear market leader, the Philippines offers immense potential for iGaming growth and especially opportunities for new entrants. Operators like GGPoker are already capitalizing on this, as they recently became the first to offer a regulated online poker room in the country. The rise of mobile, 5G internet, and cryptocurrency, combined with its passionate gaming culture, the Philippines has the potential to become a strong force in the global iGaming industry.
