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The Philippines’ gaming sector could see a return to growth in gross gaming revenue as visa policy becomes more supportive and online gambling begins to recover, according to S&P Global Ratings. The outlook comes even as tighter rules and stricter oversight have weighed on attempts to rebuild revenue lost in earlier quarters.
Revenue Pressure In Q1
S&P credit analyst Flora Chang said in a July 1 sector report that a supportive visa policy and a recovery in online gambling could drive a return to growth for the Philippines’ gross gaming revenue, or GGR. The note was obtained by Manila Bulletin.
The comments came after a relatively poor first quarter for the industry in 2026. Pagcor stated that the GGR was down 15.9% in the first three months of the year, mainly due to the significant contraction of electronic gaming. It was explained that the inflation effects of the wars in the Middle East had decreased the discretionary spending of domestic consumers.
In this sector, the following games fell sharply: e-games, e-bingo, bingo, and poker, among which electronic games declined 22.4% compared to 2025. This decline was sufficient enough to overshadow the other markets during the first quarter.
Licensed casinos remained the main revenue generator, producing ₱44.5 billion or 50.1% of the total GGR. The e-gaming sector generated ₱39.9 billion or 45.6%.
Visa Policy Support
The visa policy of the Philippines has also been changed for foreign passport holders recently. Last week, the Manila Economic and Cultural Office announced that the country had extended visa-free entry for holders of Taiwanese passports till June 30, 2027, allowing them 14 days stay in the Philippines without a visa reciprocally.
Also, The Department of Foreign Affairs made it clear that Chinese nationals are allowed to enter the Philippines without obtaining a visa for 2 weeks. This decision will start from January and will last for one year.
Those policy moves could support visitor flows at a time when the gaming industry is looking for a stronger recovery. S&P’s view links that broader tourism access with the potential for better gaming demand.
Cost And Regulation Risks
Chang also warned that higher energy costs may affect casinos that are subject to energy-saving mandates. She said rising costs could lead to reduced operating hours and lower cash flows in markets such as the Philippines and South Korea.
She further said the government’s efforts to review and revise regulations governing online gambling could affect player behaviour or raise customer acquisition costs, which in turn may hinder revenue growth and profitability. These remarks indicate that even when there is improvement in the demand side, the journey towards recovery may not be easy.
According to Pagcor Chairman and CEO Alejandro H. Tengco, the industry is expected to recover from the consumers’ confidence and spending because of two factors. The first factor was the multibillion-peso flood control corruption scandal, while the second one was the global oil shock.
Compliance Measures Tighten
The regulator has also stepped up compliance requirements. PAGCOR now requires local business-to-business service providers to meet accreditation standards, warning that failure to comply could lead to the suspension of their gaming systems and digital platforms.
Last month, PAGCOR tightened anti-money laundering controls in the e-gaming industry by expanding the reporting network to include banks and e-wallets. Under the new rules, Bangko Sentral ng Pilipinas-supervised financial institutions accredited as support service providers, including payment gateways, will be governed by Anti-Money Laundering Council rules relevant to their specific business activities.
Casino operators were also required to integrate specific corruption-linked red flags into their compliance systems. The measure is part of PAGCOR’s broader effort to clamp down on dirty money moving through the country’s gaming hubs.
Source: Manila Bulletin
