The Philippines’ PAGCOR (Philippine Amusement and Gaming Corporation) reported a sharp increase in earnings for the first nine months of the year, demonstrating the positive strength of the country’s gaming sector despite mounting regulatory challenges.
In a statement on 3 November 2025, the state-run gaming agency said its net income rose by 49 percent to PHP 14.32 billion (€227 million) between January and September, compared with PHP 9.63 billion (€153 million) in the same period last year.
Total revenues climbed to PHP 84.09 billion (€1.33 billion), up from PHP 79.43 billion (€1.26 billion), driven largely by land-based gaming operations, which contributed PHP 75.93 billion (€1.20 billion). The remaining PHP 8.16 billion (€129 million) came from other related services and income sources.
PAGCOR Chairman and Chief Executive Alejandro Tengco said the figures reflected improved governance practices, digital transformation initiatives, and a renewed focus on responsible gaming standards.
Large sum paid for nationwide efforts
The agency’s mandated contributions to nation-building also increased by 11 percent to PHP 54.26 billion (€861 million). Of this, PHP 36.06 billion (€573 million) was remitted directly to the national government under Presidential Decree 1869.
PAGCOR paid a further PHP 3.79 billion (€60 million) in franchise taxes and PHP 609.87 million (€9.7 million) in corporate income taxes to the Bureau of Internal Revenue. Around PHP 11 billion (€175 million) was earmarked for socio-civic projects, including classroom construction, healthcare initiatives, and disaster response programmes.
The Philippine Sports Commission received PHP 1.80 billion (€29 million) under its mandatory five per cent entitlement, while athletes and coaches who excelled in international competitions were awarded PHP 26.54 million (€421,000) in incentives.
Other beneficiaries included the Board of Claims, which received PHP 142.42 million (€2.26 million), and the Renewable Energy Trust Fund, which received PHP 201.47 million (€3.2 million). Cities hosting Casino Filipino branches were allocated PHP 508.20 million (€8.1 million) in revenue shares.
Challenges persist for the regulator
Despite the strong performance, PAGCOR still has ongoing issues in the online gambling industry. Officials estimate that the regulator currently captures only 45 to 50 percent of the country’s offshore and online gaming activity due to the proliferation of unlicenced operators. Numerous of these platforms make fraudulent claims to be registered, endangering state revenue and raising concerns about consumer protection. Enforcement has become more challenging as a result of illicit transactions using digital wallets and social media networks.
Technology is adding further strain. Rapid growth in electronic payments has outpaced existing rules, prompting the central bank to propose tighter oversight of e-wallet services linked to gaming.
The recent removal of e-wallet connectivity from online platforms triggered a sharp fall in player transactions, illustrating how payment regulations can directly affect revenue. PAGCOR confirmed a steep income decline from August 2025 onwards, with earnings projected to finish the year lower than expected.
Concerns about advertising exposure, particularly to minors, have also prompted stricter rules on promotional activity and billboard placements. For now, the sector remains an important contributor to government funding, but rising policy pressure suggests that PAGCOR needs to find a balance between revenue and social risk, which will continue to dominate the national debate.
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