At the end of 2025, Sweden will close its last physical casino, marking a significant shift as online gaming takes over the market. Similarly, Allwyn International is transitioning from land-based casinos in Germany and Australia to focus on online gaming assets in Greece and Cyprus. Las Vegas Sands, known for Marina Bay Sands, recently opted out of bidding for a New York land-based license, citing the rising influence of iGaming and the state’s robust online sports betting presence. MGM Resorts International also withdrew, highlighting a growing trend.
In the Philippines, online gaming has gained prominence. With over 116 million residents, it stands as the largest jurisdiction with legal domestic iGaming alongside billion-dollar integrated resorts. The country’s gross gaming revenue reached nearly $6.5 billion last year, positioning it as Asia’s second-largest gaming market, trailing only Macau and Singapore. This makes the Philippines a crucial case study for understanding online gaming’s societal impact.
This year, the Philippines saw online gross gaming revenue (GGR) outstrip land-based revenue for the first time, $2 billion compared to $1.62 billion. CLSA analyst Amos Ong had anticipated this shift by 2026, with projections of online revenues reaching $3.9 billion.
The pivotal change occurred in the second quarter, as reported by Philippine regulator PAGCOR. Online gaming accounted for 57% of the record-high quarterly revenue of $1.9 billion. Total revenue for Q2 increased by 24% from the previous year’s $1.55 billion, with land-based gaming contributing 43%, mostly from integrated resorts. Online gaming generated $1.1 billion in revenue, contributing over $275 million to government coffers.
Compared to last year’s second-quarter revenue, online gaming rose by 78%, while licensees and PAGCOR saw declines of 11% and 26%, respectively. These shifts highlight the rapid growth of online gaming, despite temporary setbacks like the August ban on popular e-wallet links to iGaming accounts, which purportedly cut revenue by half.
PAGCOR emphasizes that land-based and online gambling serve different preferences, complementing rather than competing with each other. “Each channel offers unique features, providing players with more choices,” they stated, focusing on maintaining this balance.
The online gaming boom in the Philippines began during the Covid-19 pandemic when PAGCOR allowed integrated resorts to accept digital wagers, evolving into the Philippine Inland Gaming Operator (PIGO) licenses. Despite early advantages in licensing and data, integrated resorts have struggled to dominate online. This mirrors the situation in New Jersey, where Atlantic City brands lag behind online giants like FanDuel and DraftKings.
A Philippines IR executive admitted, “Had we foreseen the market potential, we would have been more proactive.”
EuroPacificAsia Consulting’s Shaun McCamley critiques land-based operators for lacking digital understanding. Joe Pisano of Jade Gaming and Entertainment notes, “Competing online requires technological innovation, not just hospitality expertise.”
Pisano adds, “Success online demands navigating a complex ecosystem of policy, culture, and consumer behavior.” Given that 75% of Philippine online play is mobile, the landscape favors fast-loading games and low deposit minimums, appealing to lower-income players. This is crucial as tourism recovery lags and China tightens its financial policies.
Marketing specialist Jack Wheeler observes that many land-based casinos rely on outdated systems, which hinders data effectiveness across online platforms. Steve Wolstenholme points out the core differences between hospitality-focused land-based operators and tech-driven online companies.
Jonathan Pettemerides of Kyprock highlights the challenges facing casino executives tasked with online expansion without proper direction or budget.
Shaun McCamley insists, “You cannot bolt an online product onto a land-based structure and expect success.” A dedicated, experienced online team is essential. Jack Wheeler emphasizes that moving online requires significant change management.
Hotel Stotsenberg’s CasinoPlus platform serves as a digital pioneer, hiring experienced executives like Evan Spytma. Spytma asserts, “We’re setting the benchmark for land-based operators to capture the online future.”
Andrew Klebanow advises that if casinos don’t develop in-house products, partnering with online providers is the alternative, though it involves sharing revenue. Joji Kokuryo notes, “Third-party partnerships offer proven models.”
Bloomberry launched MegaFUNalo, expanding beyond traditional iGaming with a variety of games. A Bloomberry spokesperson said, “We have contracted third parties for expertise, aligning revenue arrangements appropriately.”
Greg Hawkins, Bloomberry’s president, sees online as a major opportunity, committing PHP1 billion monthly for MegaFUNalo’s marketing.
The rapid growth of online gaming has sparked calls for regulation due to social concerns. PAGCOR is reviewing regulations and has restricted advertising while targeting unlicensed sites.
The possibility of banning PIGOs is not out of the question, given past actions like the ban on eSabong. Former US diplomat and iGaming Business Asia Editor at Large Muhammad Cohen has highlighted how PIGOs could be affected by POGOs’ persistent issues.
Pisano argues against banning legal gambling, which he says undermines governance and fosters crime. Wolstenholme advocates for restricting online licenses to land-based operators, citing better employment and transparency.
McCamley encourages regulators to guide operators online with flexible frameworks, urging collaboration with digital experts to fully utilize PIGO licenses.
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