The Philippine gaming industry, once a major growth story, is losing momentum. Industry-wide revenue reached ₱94.51 billion in the third quarter, barely up from a year earlier. The central bank’s recent order to delink e-wallets from gaming platforms has sharply reduced online gaming activity.
PAGCOR officials admit that legitimate gaming operators are struggling to adjust. By forcing e-wallet users to verify and separate accounts for gaming transactions, regulators hoped to curb money laundering and illegal gambling. Instead, the rule has driven players toward unregulated offshore sites.
The slowdown is already affecting employment and tourism. Casinos report weaker VIP traffic, and gaming call centers that provide customer support for online platforms are cutting staff.
Analysts warn that without a more balanced regulatory approach, the country risks losing its foothold in the regional gaming market. PAGCOR’s own transition plan to become purely a regulator, rather than an operator, has also created uncertainty.
For the government, lower gaming revenues mean smaller remittances to the treasury, which relies on PAGCOR income to fund social projects. The tension between regulation and revenue collection will remain one of the most delicate balancing acts in 2026.