The Rise and Transformation of the Philippines' Offshore Gaming Industry

Offshore gaming had a major social and economic impact on the Philippines, generating substantial government revenue after it was formally regulated in 2016. Its rapid growth owed much to a clear regulatory framework and conditions that suited foreign operators. Its end was just as dramatic. This article traces the industry's history: the role of POGOs and PAGCOR, the scandals, the ban and what the online gaming market looks like now.

The Philippine offshore gaming landscape

Offshore gaming means gambling services offered over the internet to players in other countries: online slots, table games, live dealer games, esports and sports betting, played on phones, tablets and computers.

POGOs and PAGCOR

Until the 2024 ban, Philippine Offshore Gaming Operators (POGOs) dominated the industry. A POGO was an entity offering and taking part in offshore gaming services: running games of chance online, taking bets and paying out winnings. POGOs could only serve offshore players. Filipinos, in the country or abroad, were excluded.

The Philippine Amusement and Gaming Corporation (PAGCOR), now led by chairman and chief executive Alejandro H. Tengco, regulated the sector. PAGCOR is both a gaming regulator and a state-owned operator whose revenue helps fund government social and development programmes. Online gaming operations in the Philippines date back to the early 2000s, but a defined regulatory framework for offshore gaming arrived in 2016, under President Rodrigo Duterte.

How foreign operators fuelled the boom

A clear licensing framework let foreign operators offer legal online gambling to customers abroad. Rising international demand and internet use drove rapid growth after 2016.

The Philippines became an attractive base thanks to available office space and housing and growing demand for online gambling. Many operators were Chinese-owned and served customers in mainland China, where gambling is prohibited, and they employed large numbers of Chinese workers alongside Filipinos.

The 2019 peak and the decline

According to Focus Gaming News, the number of licensed POGOs fell sharply during the pandemic: from 35 licences issued in 2016, the total reached 63 by 2019, then dropped to 26 after COVID-19. Border closures, the collapse of travel and new taxes introduced to raise revenue during the pandemic all played a part.

The sector still employed thousands of Filipinos and foreigners. According to the PAGCOR 2023 Annual Report, earnings from online casino and electronic games grew by about 35%, from PHP58.96 billion in 2022 to PHP79.37 billion in 2023, while offshore gaming contributed PHP3.15 billion, about 4.31% of PAGCOR's gaming revenue.

Behind those figures, governance and compliance problems were mounting. Reports of crimes linked to offshore gaming hubs, including scams, money laundering, human trafficking and kidnapping, pushed the government to act.

The decision to end offshore gaming

On 22 July 2024, in his third State of the Nation Address, President Ferdinand R. Marcos Jr. announced a ban on POGOs.

Executive Order No. 74, signed in November 2024, ordered offshore gaming operations to cease by the end of the year, citing illegal activity including money laundering and scams. Enforcement continued through late 2024 and 2025, and the ban was written into law through Republic Act No. 12312, the Anti-POGO Act of 2025.

Gaming revenue after the ban

The ban did not immediately reduce overall gaming revenue. Speaking at the ASEAN Gaming Summit in Manila, Tengco said the Philippines' gross gaming revenue (GGR) grew by 25% to PHP410 billion in 2024, up from PHP329 billion in 2023. He added that e-games and e-bingo grew by 165% year on year, generating PHP154.51 billion.

For 2025, PAGCOR reported GGR of PHP396.14 billion, up 6.39% on its previous figure. That headline appears to use a different basis from the 2024 total quoted above, so the two numbers are not directly comparable. According to PAGCOR, e-games and e-bingo accounted for 50.77% of GGR, overtaking licensed casinos as the largest source of gaming revenue.

Tengco credited policy changes that made it easier for licensed operators to do business, in particular lower fees for e-games operators, charged as a share of their GGR. Cutting those fees encouraged operators to obtain licences and helped the domestic online market expand even after the offshore sector closed.

What comes next

The ban has left a domestic market of locally licensed online operators. Under pressure from those worried about gambling harm, PAGCOR has tightened its rules: it announced stricter advertising rules in 2025, and the central bank ordered e-wallets and mobile payment apps to remove links to online gambling, cutting off some popular payment routes. PAGCOR also barred the use of credit cards and cryptocurrency for betting, to protect players from risky borrowing and spending.

These rules aim to create a safer, more sustainable market, but they also make it harder for operators to reach players. According to reports in July 2026, PAGCOR's total revenue fell 26.6% year on year in the first half of 2026, largely because of lower online gaming activity, new player restrictions and wider economic pressure.

Conclusion

The POGO model appealed to the Philippine government because it promised licence fees and taxes, and before COVID-19 offshore gaming was one of the country's fastest-growing industries. But mounting crime, including money laundering, corruption and abuse, led to a complete ban in 2024, later enshrined in law.

The end of POGOs was not the end of online gambling in the Philippines. Activity shifted to locally licensed operators under PAGCOR, now operating under much tighter rules. The government urges Filipinos to use only licensed gaming sites, which can be checked through PAGCOR's verification service.