Experts weigh in as Philippines sees 93% drop in illegal gambling
The Philippines’ 93 percent drop in illegal online gambling during the third quarter of 2025 has drawn cautious optimism from industry experts, who say the milestone reflects stronger enforcement and regulatory coordination. However, they warn that sustaining this progress will require constant vigilance and cooperation between regulators and the private sector.
According to the state-owned Philippine News Agency (PNA) report, figures from cybersecurity and analytics firms Gogolook and Whoscall show a sharp decline in illegal gambling activity, attributed to joint efforts by law enforcement agencies and regulators such as the Cybercrime Investigation and Coordinating Center (CICC) and the Philippine Amusement and Gaming Corporation (PAGCOR).
Enforcement efforts’ finally aligning’
Brycan Dayao, Vice President for Operations at Amused Group, told SiGMA News that the recent drop underscores how policy alignment and inter-agency cooperation have begun to deliver tangible results.
“That 93 percent fall shows the enforcement picture is finally aligning. CICC’s figures make that clear, especially with the coordination across agencies and the control over payment channels,” Dayao said.
He added that the crackdown on payment options used by illegal operators has been particularly effective: “Cutting off easy payment options through e-wallets like GCash and PayMaya really made a difference.”
Meanwhile, the Amused Group executive also cautioned that this progress in the Philippines remains vulnerable. “I’d say this progress is still fragile. Illegal operators usually shift fast; they move to crypto or hide behind new sites. To make this sustainable, enforcement has to keep evolving, and private companies need to stay involved in monitoring and reporting suspicious activity.”
“That 93% fall shows the enforcement picture is finally aligning. CICC’s figures make that clear, especially with the coordination across agencies and the control over payment channels.”
– Brycan Dayao, Vice President for Operations at Amused Group
Jonas Diego, a gaming industry veteran, echoed this sentiment, describing the development as a clear signal of tactical success for both regulators and legitimate operators. “The shift from reactive enforcement to proactive, data-driven programmes is the right move, and it sends a strong message to the global industry: the Philippines is serious about cleaning up its digital backyard,” Diego told SiGMA News.
Still, he warned that illegal operators in the gaming industry are among the most adaptive and innovative in any sector, adding that a 93 percent drop in flagged URLs doesn’t mean the activity has vanished.
Diego emphasised the need for continued inter-agency coordination and depoliticised enforcement. “If priorities shift or enforcement becomes politicised, these early gains could evaporate just as quickly.”
“The shift from reactive enforcement to proactive, data-driven programmes is the right move, and it sends a strong message to the global industry: the Philippines is serious about cleaning up its digital backyard.”
– Jonas Diego, gaming industry veteran
Levelling the playing field for legitimate operators
Both industry leaders agreed that the clampdown on illegal gambling could reshape the competitive environment for licensed operators in the country.
“It helps level things out,” Dayao said. “Legitimate operators who follow the rules can now compete more fairly, without being undercut by illegal sites. This also builds more trust in licensed platforms and supports tax collection.”
He acknowledged, however, that tighter regulations have raised costs. “The challenge is that compliance now costs more, with tighter KYC, AML, and reporting requirements, but that’s the price of a safer and more transparent market.”
Diego noted similar effects, saying, “With illegal operators being pushed out, licensed operators will be able to compete on a more level playing field. It will certainly make them feel a bit better in the time, money, and effort they invested in compliance, infrastructure, and brand equity.”
He added that greater consistency and enforcement can potentially help repair some of the reputational damage licensed operators suffered over the last couple of years and could unlock the inflow of new capital to the country, especially for ventures blending gaming with fintech and/or entertainment.
Building collaboration for long-term resilience
The Philippine government’s growing investment in digital forensics and cybercrime capacity-building, including plans for a new digital forensics training centre in Baguio City, which the PNA reported, has also opened new avenues for public-private cooperation.
Dayao noted progress in this area. “We’re seeing good progress with enforcement, especially now that PAGCOR has started warning game providers and enforcing the new distribution rules. That’s just as important as cutting off payment channels; it closes another gap that illegal sites used to exploit.” He added that using AI to block illegal sites or trace suspicious payments is a great start, but what really matters now is consistency and momentum.
Diego outlined several ways private firms could strengthen collaboration with regulators. “Operators have several meaningful ways to collaborate with the government to help shape a safer, more transparent gaming environment,” he said, pointing to threat intelligence sharing, co-developing forensic tools, and leading public-facing transparency initiatives.
He said this shift could redefine industry relations. “This kind of collaboration moves the relationship between PH gaming regulators and licensed operators from transactional to strategic. It positions regulation not as a constraint, but as a framework for long-term growth, reputational strength, and market legitimacy.”
As both Dayao and Diego noted, the Philippines’ fight against illegal online gambling has entered a more advanced phase, one where sustained cooperation, technological innovation, and consistent policy will determine whether the progress made in 2025 endures.
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