Growth prospects for the Philippines’ online gaming segment will depend heavily on the final shape of pending legislation and the supporting regulatory framework, according to Brian Ng, president of technology services provider PhilWeb Corp.
Speaking during an in-depth interview with GGRAsia, Mr Ng said that, in terms of online gaming legislation, industry stakeholders are awaiting clarity on a bill emerging from the nation’s Senate, following hearings held since mid-2025.
PhilWeb provides technology services for the country’s online gaming industry, and operates a business-to-consumer online platform. The firm also runs a network of land-based electronic gaming venues in the Philippines.
While discussions at a technical working group level have been “very productive”, uncertainty remains over how the new piece of legislation will ultimately be framed and implemented, noted the PhilWeb executive.
A few companies in the online gambling sector in the Philippines are part of a technical working group said to be tasked with drafting legislation aimed at improving consumer protection and industry transparency. The effort also includes the country’s gaming regulator, the Philippine Amusement and Gaming Corp (Pagcor).
In August, members of the Philippine Senate began discussing stricter regulation of the country’s online gambling sector. That same month, the nation’s central bank ordered providers of electronic wallets (e-wallets) and other digital payment systems to remove links that give access to online gambling platforms in the country.
Mr Ng told GGRAsia: “It remains to be seen what the bill will look like in its finality, and that would determine the sort of infrastructure that you can build for the online sector”.
He added that the outcome would shape the pace and direction of industry growth, particularly as operators seek to align technology, compliance systems, and business models with regulatory expectations.
Mr Ng said his personal view, based on the tone of ongoing discussions, is that policymakers are unlikely to impose an outright ban on online gaming.
“Discussions have been focusing on smarter regulation. I think the authorities, be it the regulators or law enforcement agencies, recognise that this is something that can be managed and regulated properly,” the PhilWeb chief said.
“What’s also very important coming out of those discussions, is the recognition that Pagcor should be the central regulating authority for the gaming industry [nationwide],” he stated.
“The conversations have been focusing on doing this properly, in a sustainable way that is enforceable,” Mr Ng said.
Market consolidation
According to PhilWeb’s president, the introduction by Pagcor of a “minimum guaranteed fee” to be paid by all Philippines-accredited gaming system administrators (GSAs) could lead to consolidation in the market, but that would ultimately favour established and compliant operators. The new fee regime is scheduled to start from June 1, following a two-month deferral.
Mr Ng acknowledged that the announcement of the minimum guaranteed fee scheme was “definitely a concern” for the sector. “It might cause a shakeup, but it will allow serious players to remain in the industry,” he noted.
The rapid expansion of online gaming during the Covid-19 pandemic had created regulatory gaps, some of which were exploited by less scrupulous participants, the gaming industry veteran explained.
“With the tightening up, it allows serious parties… to contribute to the Philippine economy,” he said, adding that stronger competition among legitimate operators “would improve product quality for consumers”.
Mr Ng also suggested that such regulatory adjustments would in likelihood have limited impact on overall industry volumes, as a relatively small number of providers account for the bulk of gross gaming revenue (GGR) in the sector.
He estimated that of the current 65 GSAs, roughly “15 to 20 are contributing to 80 percent of total GGR in the sector”.
The PhilWeb president also highlighted the role that digital payment systems, namely electronic wallets (e-wallets), can play in strengthening regulatory oversight. Such systems, Mr Ng suggested, ensure full traceability of transactions, from verified funding sources through e-wallets to gaming platforms.
“The end-to-end chain provides a full, auditable framework,” Mr Ng stated, noting that know-your-customer (KYC) processes embedded in e-wallet systems are already highly sophisticated.
Such systems could help regulators address concerns around vulnerable players and restricted groups, including government employees, he added.
Despite the positive regulatory trajectory, the executive cautioned that macroeconomic factors could weigh on near-term growth. He cited the impact of geopolitical tensions in the Middle East and persistent inflation, which are likely to pressure household spending and redirect income towards essential goods.
Business confidence in the Philippines fell sharply in March, to minus 24.3 percent, from a positive 8.2 percent in February. It was the weakest reading in more than 25 years, according to official data.
“I think we’re still up for some challenging times,” Mr Ng told GGRAsia, noting that inflation in the Philippines is expected to remain elevated over the next several quarters.
