Online gambling in The Philippines
Background
The history of gambling in the Philippines dates back centuries, with traditional forms like cockfighting and lotteries deeply embedded in the culture. The introduction of casino gambling in the 1970s marked a significant shift, culminating in the establishment of the Philippine Amusement and Gaming Corporation (PAGCOR) in 1976. The advent of the internet in the late 1990s and early 2000s brought online gambling to the forefront, further expanding the country’s gambling landscape.
Development of Regulations
The development of online gambling regulations in the Philippines has been progressive. PAGCOR initially focused on regulating land-based casinos but adapted to include online gambling as the market grew.
The Interactive Gaming Act of 2003 allowed PAGCOR to license and regulate online gambling operators. Additionally, the Cagayan Economic Zone Authority (CEZA) and the Aurora Pacific Economic Zone and Freeport (APECO) were authorised to issue licenses to offshore online gambling operators, targeting international markets – mainland China primarily.
Until 2016 there was a dual regulatory framework for online gambling. PAGCOR oversaw the licensing and regulation of online gambling operators targeting the domestic market, ensuring compliance with local laws and consumer protection standards. Meanwhile, CEZA and APECO issued licenses to offshore operators under the Philippine Offshore Gaming Operators (POGO) scheme, allowing them to offer services to international players while based in the Philippines (servers, live dealer studios etc).
An executive order from then President Rodrigo Duterte in 2016, saw CEZA and First Cagayan stripped of jurisdiction to regulate and license POGOs and authority was handed over to PAGCOR.
In the years since, POGOs were allowed to proliferate, with the industry employing over 300,000 workers (most from mainland China) at its peak. Manilla was for some time the epicentre of live dealer studio operations servicing Asian markets. But in addition to economic benefits, the burgeoning POGO industry came with considerable downsides – crime and corruption among them.
In his state of the nation address in July 2024, Philippine President ‘Bongbong’ Marcos Jr announced a complete ban on all POGOs by the end of 2025.
PAGCOR remains licensor and regulator of online gambling operators targeting the domestic market.
Major Operators
The major operators in the Philippine online gambling industry are divided between a limited number targeting the domestic market, and many (but soon to be none) targeting offshore markets. Domestically, PAGCOR licenses a limited number of operators, such as PhilWeb, which offers e-Games cafes and limited online gaming services.
Offshore, the POGO scheme has attracted numerous international operators, including Bet365, Dafabet, and 1xBet, which target markets outside the Philippines. But their days under this scheme are numbered, which could see them offer their products online to Filipinos in the future.
