iGaming GGR in the Philippines Reaches $2.4 Billion in Q3 2024

Online gambling in the Philippines is experiencing rapid growth. According to Morgan Stanley, the gross gaming revenue (GGR) in the online gaming segment reached $2.4 billion in Q3 2024. This accounts for approximately 70% of the total revenue of the country’s land-based gaming establishments, highlighting the growing popularity of digital gambling.

The Contribution of Online Gambling to the Economy

Online gambling has become the primary source of tax revenue in the gaming sector. In Q3 2024, PHP28 billion ($490 million) was collected, surpassing the figures from the land-based segment. Compared to Q1 2024, when online gaming GGR accounted for 40% of the land-based total, this figure has grown to 70%, indicating a significant increase in the online market share.

Challenges and Prospects of Tax Regulation

Despite substantial tax revenues, the PAGCOR regulator faced challenges in meeting tax collection projections. Starting in 2025, the tax rate for licensed iGaming operators will be reduced from 35% to 30%, while integrated resorts will see a reduction to 25%. This adjustment aims to make tax rates more competitive and align them with those of land-based operators, where rates are 25% for mass-market gaming and 15% for VIP gaming.

Market Leaders and Competition

The leading operator in the online gambling market is DigiPlus, which controls 50% of the market with over 30 million registered users. In 2024, DigiPlus surpassed Bloomberry Resorts Corp. in GGR and EBITDA. However, competition is intensifying. Bloomberry plans to launch a new online gambling app under a separate brand in Q3 2025 to attract a new audience.

Development of the Local Market

PAGCOR emphasizes that the growth of the domestic eGames segment, including eCasino, eBingo, sports betting, and specialty games, is a critical driver for the country’s economy. At the same time, the government is phasing out the offshore gambling operator (POGO) sector. A complete ban on POGO will take effect on January 1, 2025, reflecting a shift in focus toward domestic growth.

Comparison with Other Countries

In the Philippines, online gambling GGR accounts for 70% of the land-based total, significantly higher than in the United States, where this figure is 30%. By comparison, the U.S. land-based gaming market is valued at $23 billion, underscoring the scale and potential of the Philippine iGaming segment.

Online gambling in the Philippines continues to show impressive growth, becoming an important source of tax revenue and a driver of economic development. The reduction in tax rates for operators and new market entrants like Bloomberry promise to make the market even more competitive and attractive.