The Philippine gaming industry is expected to return to growth as more supportive visa policies emerge and a recovery in online gambling improves market conditions. This is according to S&P Global Ratings.
In a July report, S&P analyst Flora Chang said stronger tourism and improving online gaming activity could help lift the country’s gross gaming revenue (GGR). This may happen after a weak start to 2026.
Weak First Quarter
The industry’s first-quarter performance was affected by softer consumer spending and a sharp decline in electronic gaming.
According to PAGCOR, total GGR fell 15.9% year-over-year, with electronic gaming revenue dropping 22.4%. Despite the slowdown, licensed casinos remained the largest revenue source, contributing ₱44.5 billion, while e-gaming generated ₱39.9 billion.
Visa Changes May Boost Demand
Recent visa policy changes could support international visitor arrivals. The Philippines has extended visa-free entry for Taiwanese passport holders until June 2027. Additionally, the country introduced a 14-day visa-free program for eligible Chinese tourists.
S&P believes these measures could strengthen tourism and increase demand for casino gaming.
Compliance Costs Remain a Challenge
Despite the positive outlook, S&P warned that higher operating costs and stricter regulations could weigh on profitability.
PAGCOR has introduced tougher accreditation requirements for gaming service providers. It has also expanded anti-money laundering rules to cover payment providers and e-wallets. Furthermore, PAGCOR required operators to strengthen compliance systems to detect corruption-related risks.
While demand is expected to improve, the agency believes operators will need to balance growth with increasing regulatory and compliance obligations.
