New data from Philippine Amusement and Gaming Corp. (Pagcor) showed revenues growing in the first nine months of the year, but a closer look at the July-to-September period revealed a roughly 9-percent drop to P25.1 billion.
This also resulted in nine-month revenue growth of 5.9 percent—the slowest since 2022, data compiled by InsiderPH showed.
Pagcor said profits surged 49 percent during the period, although it has yet to provide a detailed breakdown of its earnings.
Mobile wallet delinking is having an impact
This follows a Bangko Sentral ng Pilipinas–led directive that compelled mobile wallets to delink in-app access to gambling sites halfway through the third quarter of the year.
While e-wallets can still transfer funds, the BSP order disables in-app features that previously allowed users to directly access online gambling sites.
This has stemmed growth in an otherwise robust sector led by tycoon Eusebio Tanco-chaired DigiPlus Interactive, which had been driving Pagcor’s soaring gaming revenues in recent years.
Illegal firms benefiting as industry takes significant hit
An online gambling insider said the crackdown has severely hit the segment, with industrywide revenues shrinking by at least 30 percent.
The problem, the insider noted, is gamblers will just seek other outlets and are increasingly turning to illegal gaming markets, which continue to thrive.
Pagcor Q3 gaming revenues swing 19 percent to the downside
Abacus Securities research head Nicky Franco said gaming revenues contracted 8.1 percent to about P24.5 billion in the third quarter after growing 14.5 percent in the first quarter and 20.8 percent in the second quarter.
This 19 percent downside swing from the second to third quarter points to a slowdown in the massive online gambling segment, which accounts for over half of the domestic gaming sector.
Analysts’ view
Franco said Pagcor figures align with their projections of an 18–20 percent quarterly gaming revenue, or GGR, decline for DigiPlus.
“[W]e believe that Pagcor’s take from physical casinos fell less dramatically, which would mean online platforms suffered more,” he said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
