The online gaming industry in the Philippines is experiencing significant growth, with more companies entering the regulated market. Evan Spytma, CEO of CasinoPlus, highlighted the increasing competition, stating, “New companies are coming on board at a faster rate, and what you’re going to see this year is a lot of those local ‘grey’ sites launching in the local market as a regulated entity.”
It is anticipated that competition would increase all year long as these new players enter the market. By the next year, Spytma anticipated a “shakeout period” as businesses adapt to the changing market conditions. He added that although the market as a whole is expected to produce more money, current operators will have to deal with increased expenses, especially for promotional activities.
These observations were made by Spytma at the ASEAN Gaming Summit in Manila, where business executives convened to talk about the newest developments and difficulties.
Regulation and Digital Transformation
The Philippine Amusement and Gaming Corporation (Pagcor) has played a critical role in shaping the gaming sector by introducing updated regulations. Pepe Costa, the country manager for FBM, acknowledged the shift, saying, “Pagcor recognized the growing challenge, and it responded by updating regulations and licensing [requirements] for the sector.”
Costa explained that the COVID-19 pandemic accelerated digital transformation in the industry, leading to a surge in online gaming. This spike also attracted unregulated operators targeting Filipino players. In response, Pagcor implemented stricter regulations to ensure safer, legal gaming experiences.
Moreover, Pagcor reduced the remittance rates for online and on-site betting platforms from 35% to 30% this year. This decision has further encouraged regulated operators to expand their services.
The increased use of digital payment platforms like GCash and Maya has also contributed to the industry’s growth. CasinoPlus has benefited from these partnerships, with Spytma explaining, “When you’re integrating your product into that, they’ve already done a first round of KYC [know your customer] procedures, and then you’re doing a second round of KYC. We see our best customers coming from those clean channels.”
Additionally, the introduction of specialty games inspired by traditional Filipino culture has broadened the gaming experience. Spytma noted that this diversity “opened up the market to all this new style of games.”
DFNN Inc. CEO Ricky Banaag further highlighted the impact of regulation changes over the past five years. “The amendments or changes that were implemented through these five years, I think that helped us [the eGames sector] a lot,” he said.
With a competitive landscape and continuous innovation, the Philippine gaming sector is poised for further expansion, benefiting both operators and players.
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