Expert says Philippines to remain Asia's key regulated market
The Philippines is likely to remain Asia’s only fully regulated online gambling market for at least the next few years, according to Keith McDonnell, Director of KMI Group, who believes operators targeting future markets such as Thailand and Vietnam should already be laying the groundwork for expansion.
Speaking to SiGMA News at SiGMA Asia 2026 in Manila, McDonnell said the question of which Asian jurisdiction will regulate next remains one of the industry’s most frequently debated topics. “The reality is the Philippines is still the only truly regulated market in the region and is likely to stay so for at least a couple of years,” McDonnell said.
His comments come as the SiGMA Asia Market Report 2026 highlights a region where player demand continues to outpace regulation. Covering 28 Asian markets, the report found the region generated a Blask Index of 4.44 billion, attracted 155.7 million active players and produced an estimated $45.5 billion in cumulative revenue over the past year. Blask Index represents the aggregated level of user interest in all gaming brands.
According to the report, Asia’s iGaming sector is a market defined by both scale and complexity, with regulated jurisdictions coexisting alongside high-demand markets that remain largely unregulated.
Thailand remains the market to watch
While the Philippines remains the region’s regulatory benchmark, McDonnell said Thailand is increasingly viewed as the most likely candidate for future regulation. According to McDonnell, discussions have centred around a limited licensing model that could require online operators to partner with land-based casino operators.
He said companies interested in Thailand should already be establishing relationships within the market. “Really now, if operators are serious about Thailand, they have to be establishing relationships with these land-based casinos.”
Vietnam is another market frequently mentioned by industry stakeholders, but McDonnell warned that expectations should remain realistic. “Vietnam was talked about during the Russia World Cup in 2018, again one or two years ago, and still, we’re no closer,” he said, attributing much of the delay to political uncertainty.
The SiGMA Asia Market Report found that Southeast Asia now accounts for the majority of the region’s highest-engagement gaming markets, driven by mobile-first consumer behaviour and increasing internet penetration.
Localisation remains the difference between success and failure
For operators seeking expansion across Asia, McDonnell said localisation remains one of the most misunderstood aspects of market entry. “What separates operators that successfully scale across Asia from those that fail to expand beyond one market? That’s really true localisation.”
He criticised companies that assume superficial branding changes are enough to appeal to Asian audiences. Instead, operators must understand local culture, consumer behaviour and product preferences.
“They need to truly understand the market. They need to understand the culture, the way the locals think, and their product requirements.”
McDonnell said the most successful companies work closely with trusted local partners. “The only way they can do that is not [to come] back from their ivory towers in Europe or wherever else. They need to partner with local experts who are immersed in society in the regions they’re moving into.”
The SiGMA Asia Market Report supports this view, noting that regional operators continue to strengthen their market positions through localised products, payment solutions, and market-specific strategies.
Fragmentation will remain Asia’s reality
Despite growing discussions around regulation, McDonnell does not expect Asia to move towards a common regulatory framework. According to him, the region’s political systems, cultural differences and regulatory priorities make harmonisation unlikely. “It’s impossible to have a unified or semi-unified set of regulations applying to multiple countries.”
Instead, each jurisdiction will develop frameworks tailored to domestic priorities. “There will not be any sort of pan-Asian regulation. It’ll be a case of individual regulation based on local requirements.”
However, he expects governments considering regulation to study successful models already operating in the region.
“I think what will happen, though, is that other countries like Thailand and Vietnam will be looking very closely at what’s happening in the Philippines and seeing what sort of job PAGCOR (Philippine Amusement and Gaming Corporation) are doing.”
The SiGMA Asia Market Report similarly identifies the Philippines as Asia’s leading regulated market, recording monthly revenue peaks exceeding $1 billion and benefiting from a structured licensing framework, a digitally engaged population and strong regulatory oversight.
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