Growth in the Philippines’ online gaming industry will largely depend on the final version of pending legislation. The regulatory framework that follows is also key, according to PhilWeb Corp president Brian Ng. He noted that operators are still waiting for clearer guidance from the Senate process before making long-term expansion decisions.
Ng explained that although technical working group discussions have been productive since hearings began in mid-2025, uncertainty remains. The uncertainty is about how the final bill will be implemented in practice.
Regulatory Direction Will Shape Industry Infrastructure
PhilWeb Corporation provides technology services to the Philippines’ gaming sector and operates both online and land-based electronic gaming venues. The company said the final regulatory structure will determine how the industry builds its future infrastructure.
Ng emphasised that operators are currently positioning themselves in anticipation of the final framework. This framework will define the sector’s next phase of growth and expansion.
No Ban Expected as Focus Shifts to Regulation
Ng said policymakers appear unlikely to pursue a full ban on online gaming, instead favouring a more structured regulatory approach. Based on ongoing discussions, he noted that authorities increasingly recognise the sector can be effectively managed under proper oversight.
He also highlighted expectations that the Philippine Amusement and Gaming Corporation (PAGCOR) will remain the central regulatory authority for the industry nationwide.
Market Consolidation Expected Under New Fee Regime
Ng pointed to PAGCOR’s upcoming minimum guaranteed fee for accredited gaming system administrators, set to take effect on June 1 following a short deferral, as a potential driver of market consolidation.
While the fee structure may challenge smaller operators, it is also expected to raise industry standards by encouraging stronger, more compliant participants. Ng estimated that out of roughly 65 gaming system administrators, only 15 to 20 generate around 80% of total gross gaming revenue. This suggests limited impact on overall market output.
Digital Payments Improve Transparency and Oversight
Ng also highlighted the growing role of digital payment systems, particularly e-wallets, in improving regulatory oversight. He noted that these platforms offer full transaction traceability, from verified funding sources to gaming accounts. This creates a more auditable ecosystem.
He added that existing know-your-customer frameworks within e-wallet systems are already highly developed. In addition, they could help regulators address concerns related to responsible gaming and restricted users.
Short-Term Headwinds May Slow Growth
Despite a positive long-term outlook, Ng warned that macroeconomic pressures could weigh on the sector in the near term. Factors such as geopolitical tensions in the Middle East, inflationary pressures, and reduced consumer spending may impact growth momentum.
He also cited declining business confidence in the Philippines, which fell to -24.3% in March from +8.2% in February, marking its lowest level in over 25 years. According to Ng, these conditions suggest a challenging operating environment for the industry in the short term despite continued regulatory progress.
