The decline was primarily driven by the Bangko Sentral ng Pilipinas (BSP) decision to disconnect e-wallets from online gambling platforms—an action that disrupted the sector and may fuel the expansion of illegal gambling activities.

1. New Regulations and Industry-Wide Impact

The BSP’s new rules have directly affected industry confidence. Philippine Amusement and Gaming Corporation (PAGCOR) Chairman Alejandro Tengco noted that payment restrictions are the main factor behind the decline. While the policy aims to protect players and ensure financial transparency, it has caused short-term disruptions to the gaming sector.

2. Significant Hit to the E-Games Segment

E-Games, previously the industry’s primary growth driver, posted PHP 41.95 billion in revenue in Q3, up 17.4% year-on-year. However, transaction volume dropped after the August payment delinking. DigiPlus, the market’s largest operator, reported a 59% plunge in net income and a 23% decline in revenue. As E-Games contribute 44.4% of overall gaming revenue, any disruption in this segment has a direct and substantial impact on the entire industry.

3. Traditional Gaming Performance and Illegal Market Risks

Traditional gaming also faced pressure: licensed casinos reported a 10.2% revenue decline to PHP 45.56 billion, PAGCOR-operated casinos fell 11.6% to PHP 3.22 billion, and bingo revenue dropped 16.2% to PHP 3.79 billion.

Meanwhile, illegal gambling websites are expanding, with players shifting to underground platforms—raising concerns over tax losses and lack of regulatory oversight. PAGCOR has vowed to intensify enforcement efforts and expects the market to gradually stabilize in the future.