A new report by Diego Cruz for Arden Consult says stricter regulatory requirements are reshaping the Philippine online gaming industry, increasing compliance costs for licensed operators and contributing to mixed financial results during the first quarter of 2026.
The report argues that the sector’s performance cannot be explained solely by the removal of direct e-wallet access to licensed gaming platforms. Instead, operators are adapting to a broader regulatory environment that now includes stricter know-your-customer (KYC) procedures, anti-money laundering (AML) controls, advertising restrictions, supplier accreditation, and responsible gaming requirements.
Arden disclosed that its Chief Executive Officer and Head of Legal and Regulatory, Atty. Marie Antonette Quiogue, serves as an independent director of PhilWeb Corporation. The firm stated that the report reflects the author’s independent analysis based on publicly available information.
E-Wallet Delinking Added Friction
In August 2025, the Bangko Sentral ng Pilipinas instructed digital wallet providers to remove links directing users to licensed online gaming platforms.
While players could still use e-wallets to fund their gaming accounts, they were required to leave the wallet application and access operator websites directly, creating additional steps in the payment process.
According to PAGCOR, online gaming transactions declined by approximately 50% following the change. Monthly regulatory revenue from licensed online gaming dropped from about PHP5.7 billion (US$92.9 million) in May 2025 to roughly PHP2.9 billion (US$47.3 million) by September, making the regulator’s original annual revenue target difficult to achieve.
Operators Report Mixed Results
DigiPlus experienced one of the largest declines among listed operators. First-quarter 2026 revenue fell from PHP23 billion to PHP17.2 billion (US$280.4 million), while EBITDA declined 42% to PHP2.6 billion (US$42.4 million). Chairman Eusebio Tanco attributed the weaker performance to lower player activity following the e-wallet changes.
Bloomberry Resorts also reported weaker results, posting a net loss of PHP116 million (US$1.9 million) compared with a profit of PHP3.3 billion a year earlier. The company recorded lower VIP rolling chip volume, reduced mass table revenue, and weaker electronic gaming machine performance. Despite these challenges, its online gaming revenue doubled during the quarter after replacing MegaFUNalo! with FUNaloMax.
DFNN continued to face pressure as lower online gaming commission income and higher operating expenses widened its fiscal 2025 net loss to approximately PHP411 million (US$6.7 million).
PhilWeb Outperforms Peers
PhilWeb emerged as one of the strongest performers during the quarter.
The company reported first-quarter revenue of PHP233.1 million (US$3.8 million), representing 30% year-on-year growth and a 33% increase from the previous quarter. EBITDA improved from a loss of PHP3 million to a positive PHP23 million, while net income reached approximately PHP14 million.
The report attributes PhilWeb’s performance to its managed-services business model, under which land-based casino operators utilize PhilWeb’s technology and services while operating under PAGCOR licenses.
PhilWeb’s Online e-Gaming Solutions segment generated PHP79.3 million (US$1.3 million), accounting for roughly one-third of total group revenue. Publicly disclosed clients include FBM Philippines, Hann Resorts, Tiger Resort, Newport World Resorts, NUSTAR Online, and PT Gaming.
Compliance Becomes a Competitive Advantage
Cruz concluded that rising compliance requirements are encouraging operators to work with specialized technology providers capable of handling verification, AML monitoring, responsible gaming controls, advertising approvals, supplier accreditation, and deposit management.
The report argues that regulatory complexity is increasingly becoming a competitive advantage rather than simply an operational burden. Arden said second-quarter earnings will provide a clearer indication of whether recovery is spreading across the listed online gaming sector as operators continue adapting to the evolving regulatory environment.
