Manila, Philippines - As the Philippines actively reforms its gaming regulatory landscape, the nation’s gaming industry continues to demonstrate robust performance, particularly within the burgeoning iGaming segment. The Philippine Amusement and Gaming Corp (Pagcor) has announced strong financial results for the first quarter of 2025.

Pagcor posted total earnings of PHP28 billion (approximately $502.9 million) for Q1 2025, marking an impressive 11.2% increase compared to the same period last year. This performance also exceeded the government’s target for the quarter by 4.45%, highlighting the sector’s significant contribution to the national economy.

The vast majority of Pagcor’s earnings, PHP25.53 billion or 91% of the total, was generated from gaming operations and licensing fees. The remaining balance was derived from business income and service fees. Contributing to the positive financial outlook, Pagcor also saw a notable 15.5% reduction in expenses, which dropped to PHP6.22 billion from PHP7.36 billion in the prior year.

Crucially, Pagcor’s net income for the first quarter reached PHP4.22 billion, a significant 23% increase year-on-year, underscoring enhanced profitability and operational efficiency within the state-run entity and the licensed sector it oversees.

Breaking down the gaming revenue, electronic games (egames) and ebingo operations were the primary drivers, contributing more than half (56%) of the total at PHP14.32 billion. Licensed and Pagcor-operated casinos accounted for the remaining 44%, bringing in a collective PHP11.2 billion.

Pagcor CEO and Chairman Alejandro H Tengco commented on the results, stating, “This solid performance reflects Pagcor’s commitment to responsible governance and fiscal discipline.” He added that Pagcor’s contributions to nation-building initiatives for the period totalled PHP18.9 billion, an increase of 21.5% from the first quarter of 2024.

Expanding Regulatory Oversight to Third-Party Vendors

In addition to the positive financial news, Pagcor recently disclosed plans to expand its regulatory authority to encompass third-party gaming vendors. According to a notice issued on April 30 by Jeremy B Luglug, assistant vice president of Pagcor’s Electronic Gaming Licensing Department, the regulator is preparing to release a new Regulatory Framework for the Accreditation of Gaming Affiliates and Support Service Providers.

This development will bring various third-party providers, including payment processors, marketing affiliates, Know Your Customer (KYC) solution providers, and testing laboratories, under direct accreditation and oversight by Pagcor. This move is seen as a key component in an ongoing effort to enhance the probity and integrity of the Philippines gaming industry, which stands as the third-largest contributor to the national treasury, behind only the internal revenue and customs bureaus.

This strategy aligns with broader government efforts to strengthen the Philippines’ position as a transparent and secure gaming jurisdiction, a push that gained momentum following the ban on Philippine Offshore Gaming Operations (POGOs) due to crime allegations and the country’s subsequent delisting from the Financial Action Task Force (FATF) grey list in February 2025 after implementing rigorous anti-money laundering and counter-terrorism financing reforms. The ultimate goal is to boost international investor confidence and attract further foreign direct investment into the sector.

Progress on Casino Divestment Plan

Pagcor also continues to advance its long-term strategy to divest its portfolio of owned and operated casinos. This plan aims to address long-standing criticisms from lawmakers and industry stakeholders regarding Pagcor’s dual role as both a regulator and an operator, which is widely viewed as a potential conflict of interest.

The proposed sale includes 45 Pagcor-managed gaming halls, encompassing the nine under the well-known Casino Filipino brand. Analysts and government projections suggest the sale could potentially yield up to PHP50 billion for the regulator, providing a significant financial boost. While originally anticipated to commence this year, the divestment process is now expected to be fully completed by 2026, marking a significant structural change for the Philippine gaming landscape.