Learn more about the factors that helped the Philippine gaming sector grow rapidly and how the country became a leading Asian gambling destination.

Gambling is a popular leisure activity in many countries worldwide and is particularly attractive to people in Asia. The industry is thriving in many different countries on the continent, where both land-based and online gambling activities are allowed and appropriately regulated.

The Philippines is a country where gambling is allowed, and institutions are trying to establish good regulations to control gambling and, at the same time, benefit from it.

Thanks to continuous efforts, the Philippines is now one step closer to becoming the second gambling destination in Asia. Read this guide to learn more about the country’s development in the gaming sector.

The Growth of the Gambling Industry in the Philippines

The Philippines is among the jurisdictions where the governing authorities have seen the potential of legalizing gambling and applying strict regulations to control it more efficiently. In recent years, the country has seen a significant rise in the gambling sector and has quickly started to compete directly with leading gaming destinations like Macau and Hong Kong.

Many online gaming activities in the country have evolved. The rise of online slot casinos in the country was rapid, and nowadays, the iGaming sector is adequately controlled and generates huge income.

The latest analysis of PAGCOR – the Philippines’s official gambling regulator, shows that the country is close to reaching second place as a top gaming destination in the region. According to the regulator, the revenues from gambling activities in the country for 2023 have hit PHP 285.27 billion.

The Philippines – Chances to Become a Leader in the Gambling Sector in Asia

These revenues are much higher than the pre-pandemic levels, and according to the PAGCOR chairman and CEO Alejandro H. Tengco, the new gross revenues record is up 11.22%. This is a significant rise compared to the record from 2019, where the revenues have reached PHP 256.49 billion.

Major Factors Contributing to the Rise of the Gaming Industry

The growth of the gambling sector is essential for the country, as the government aims to settle better control and more transparent regulations for the gambling business. The Philippines is a popular tourist destination, and gambling is part of the entertainment industry on which the country relies.

However, behind the growing numbers, several factors contributed to this significant development.

Competitive Tax Policies
Expanding Integrated Resorts (IRs)
The Rapid Development of the Online Gaming Sector
Strong Domestic Demand
Tourism Growth & Location

This vast development of the gaming sector can position the Philippines on the leaderboard of countries where the gambling industry scores excellent results, helping the economy grow vastly.

Tourism and Location

The Philippines has an excellent location in the region, which is one reason for the country being a popular tourist destination, apart from its vibrant culture. Tourism is a main sector helping the local economy grow. Moreover, gambling activities in the country are tied to the tourism sector, and there are many trustworthy casinos in the Philippines.

This year, the resorts in Manila are expected to welcome more than 7.7 million foreign visitors. According to the economic predictions, this will be a significant rise compared to 2023, when the number of foreign visitors reached 5.45 million.

Government Regulations

Together with the tourism sector, the governing authorities develop the gambling sector as well. Currently, the iGaming industry in the country is also growing at a fast pace. In 2023, it generated 20% of the gross revenues.

Moreover, the government plans to expand the casino industry by allowing even more casinos to open doors to visitors. A huge casino resort project is on its way in Manila, and around eight new casinos are expected to start operating in different locations across the country soon.

The country’s upcoming casinos will probably cost over $1.2 billion. They are planned to rise in key locations such as Manila, the former U.S. airbase in Clark, and popular tourist hotspots like Cebu and Boracay.

All this shows that the government aims to connect tourism tightly to gambling and combine both industries for even better economic growth.

Online gambling is another part of the industry that the country’s government aims to develop and control better. The Philippines gambling regulator implements strict control over online casino operators so that they can provide secure and fair services.

In recent years, iGaming in the country has scored substantial growth thanks to the efforts of the regulator to minimize non-controlled gaming activities online and to set new rules on how the sector should develop.

Now, licensed online casinos in the Philippines continue to be one of the main contributors to the GDP revenue. So, the online gaming sector is also expected to contribute significantly to the economy’s growth.

Philippines Compared to Other Major Gambling Hubs

The boost of the Philippines’ economy through tourism and gambling helped the country become a strong contender to other top gambling destinations on the continent like Macau and Singapore and rising markets like Thailand.

Macau is the leader in the region with its huge casino resorts and gambling options suitable for high rollers. Compared to it, the Philippines is the more affordable destination, offering various gaming opportunities.

Like in the Philippines, the gambling market in Singapore is regulated very strictly, and this country manages to compete by combining luxury tourism and glamorous gambling entertainment.

Compared to the rest of the gaming destinations in the region, the Philippines’ key advantage is its rapidly developing iGaming industry. This is because the sector recorded a staggering 525% year-over-year revenue increase for 2024.

Final Thoughts

The elements that helped boost the Philippines’ gaming economy were the lower operating costs, strong government support, and strategic location. With strict gaming regulations and measures in place, the country is expected to maintain its leading position as a top gambling destination in the region.