PAGCOR Reports 50% Plunge in Online Gambling Revenue

Key Takeaways:

• Philippine online gambling transactions dropped by up to 50% following the disconnection of e-wallets from gaming sites.
• The measure, aimed at curbing illegal operations, has led to a significant decline in PAGCOR's income from the sector.
• Regulators continue enforcement efforts, with potential long-term shifts toward more controlled payment channels.

The Philippine Amusement and Gaming Corporation (PAGCOR) has disclosed a sharp decline in online gambling revenue, with transactions falling by as much as 50% after major e-wallets payments severed ties with gaming platforms. This development, highlighted during PAGCOR's August congressional hearing, underscores the immediate financial repercussions of recent regulatory crackdowns on unlicensed operations. E-wallets, previously a primary conduit for deposits and withdrawals, were mandated to disconnect from offshore and unauthorized sites to align with anti-money laundering protocols and bolster player protections.

The revenue drop represents a pivotal moment for Southeast Asia's iGaming landscape, where the Philippines Online Casinos, has long been a hub for offshore operators serving international markets. In the first half of 2025, the sector had shown robust growth, with online gaming surpassing traditional casino earnings for the first time—a milestone that highlighted the digital shift in player preferences. However, the e-wallet restrictions have disrupted this momentum, forcing operators to pivot toward alternative payment methods like bank transfers and cryptocurrencies, which often come with higher friction and lower conversion rates.

For licensed operators, the impact is twofold. On one hand, the measures strengthen PAGCOR's oversight, potentially weeding out rogue platforms and fostering a more sustainable ecosystem. Compliant entities may benefit from increased trust among players wary of scams, leading to higher retention in regulated environments. On the other, the revenue shortfall—estimated in the tens of millions—could strain PAGCOR's contributions to government coffers, which fund social programs and infrastructure. This comes amid broader reforms, including the 2024 ban on Philippine Offshore Gaming Operators (POGOs), which already displaced thousands of jobs and redirected billions in economic activity.

Industry observers note that while short-term losses are evident, the changes could catalyze innovation. Online casino software providers are accelerating integrations with secure, regulator-approved fintech solutions, such as blockchain-based wallets, to streamline transactions without compromising compliance. For players in emerging markets like Indonesia and Vietnam, who often route through Philippine platforms, this may mean fewer accessible options but greater safeguards against fraud. Globally, the episode serves as a cautionary tale for regulators in jurisdictions like Brazil and Colombia, where similar payment restrictions are under debate. As iGaming matures, balancing revenue generation with ethical governance remains paramount, ensuring the sector's growth benefits stakeholders without exacerbating social risks.

Ultimately, PAGCOR's data signals a maturing market prioritizing integrity over unchecked expansion. Operators adapting swiftly—through diversified payments and enhanced KYC processes—stand to gain market share, while laggards risk obsolescence. This pivot could redefine Southeast Asian iGaming, setting precedents for responsible digital wagering worldwide.

Sources:

• agbrief.com/pagcor-income-plunges-up-to-50-after-e-wallets-cut-gambling-links/