GROSS GAMING REVENUE (GGR) is expected to contract this year, reversing the growth posted in 2025, with the crackdown on online gambling putting the industry under pressure, Standard and Poor’s (S&P) Global Ratings said.
In a July 28 report, S&P said GGR is projected to contract 7% this year, after posting 6% growth in 2025.
“When rapid industry growth triggers public outcry, legislators often respond with high-impact policy U-turns to maintain social order,” the credit rater said.
“The Philippines is a case in point. Twenty-fold growth in online gaming between 2022 and 2025 ignited concerns over addiction, prompting sudden restrictions on e-wallet linkages in August 2025. Such shifts can cause severe revenue erosion, as seen with the dominant operator Digiplus Interactive Corp.,” it added.
In August, the Bangko Sentral ng Pilipinas ordered electronic wallet operators to remove their payment links to online gambling platforms after a public outcry over gambling addiction.
S&P’s projection is less severe than the 19% revenue decline forecast by the Philippine Amusement and Gaming Corp. (PAGCOR).
In the first quarter,GGR declined 15.87% to P87.6 billion, according to PAGCOR.
PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said earnings will likely remain tepid in the second quarter as the Middle East war dampens consumer spending and tourism flows.
He added, however, that gaming could rebound in the second half as easing oil prices prop up consumer spending, with the electronic gaming segment still expected to drive the industry’s growth.
By 2027, S&P sees the industry recovering with 2% revenue growth.
Meanwhile, it said large investments in physical casinos could stall because of the reduced regulatory burden on the online segment.
“In the Philippines… more lenient stances toward online gambling may reduce the returns and feasibility of large-scale physical casino investments,” it said.
PAGCOR has opposed a total ban on online gambling, saying the concerns raised about the segment can be managed with regulation, fees, and money-laundering compliance checks, and controls on advertising.
In May, S&P downgraded its outlook on Okada Manila operator Universal Entertainment Corp. to negative from stable, citing the overall weakness of the physical casino segment.
“The downturn in the integrated resort business is likely to continue due to tough macro conditions and competition in the Philippine gaming market,” it said. — Katherine K. Chan
