How Online Gambling Is Regulated in the Philippines in 2025

The Legal Foundations of Philippine Online Gambling

The Philippine Amusement and Gaming Corporation (PAGCOR) was established by Presidential Decree 1869. This decree gave PAGCOR the power to run and allow gambling for “amusement and recreation,” which included sports pools and casinos. The main powers of the franchise can be found in the original order on the e-library of the judiciary (PD 1869 text).

Then, Republic Act 9487 changed that charter. It gave PAGCOR a franchise for up to 25 more years and made it clear that it can both run its own gaming operations and allow private operators while still being supervised by the government.

Together, PD 1869 and RA 9487 are the main laws that govern casinos, video games, and other PAGCOR-licensed businesses, including their online versions.

In addition to PAGCOR, the Philippine Charity Sweepstakes Office (PCSO) is also backed by Republic Act 1169 and later changes like Batas Pambansa Blg. 42. These laws say that PCSO is the only organization that can run national lotteries and similar games. Its job is to split the money it makes into prize funds, charity funds, and operations, all of which must follow the rules set out in its revenue allocation rules.

The result is a clear split in the law: PCSO is in charge of lottery-based games that raise money for social programs, while PAGCOR is in charge of casinos and most e-gaming goods.

PAGCOR’s Role in Licensing and Overseeing Online Play

CAGCOR is the key company that controls legal online gambling. Its franchise, which was strengthened by RA 9487 and related Supreme Court cases, gives it clear power to license and oversee all gaming businesses across the country. This includes even those who only work online.

PAGCOR has made thorough regulatory manuals and frameworks so that they can do that consistently. As an example, the Gaming Site Regulatory Manual for Electronic Games is part of every gaming licence. It tells users how to set up and run an electronic gaming site.

At the same time, a different set of rules for accrediting gaming system service providers spells out how platform and content providers can be recognised. Before they can sell electronic gaming systems to approved operators, accredited providers have to meet certain capital, technical, and operating standards.

This two-layer approach, with licensed operators at the front end and accredited technology providers at the back end, is meant to keep a close eye on both the business activities and the technology that runs them.

Domestic E-Games, E-Bingo, and Regulated Sports Betting

Under this umbrella, PAGCOR’s Electronic Gaming Licensing Department gives out licenses for a lot of different domestic goods. These include traditional bingo, e-bingo, e-casino games, sports betting, specialty games, online poker, and number games.

These groups make it easy for operators to bring different types of online content to market while still following the same rules.

The numbers show how important these controlled parts of the internet have become. PAGCOR made a total of PHP 28.07 billion in sales in Q1 of 2025. Electronic Games and E-Bingo brought in PHP 14.32 billion, which is about 56% of all game sales. This is seen by business media and PAGCOR as proof that the domestic e-gaming market is now the major growth driver in the industry.

Industry reports using PAGCOR data show that by the middle of 2025, the first half of the year had brought in about PHP 214.75 billion in gross gaming income (GGR) from all licensed Philippine operations. This was the first time that GGR from domestic online gaming went over US$2 billion.

This success shows how a clear regulatory environment can help both offline and online channels keep growing and investing.

How Lotteries and STL Fit Into the Regulatory Picture

While PCSO’s charter sees it as an important part of the system rather than a rival, PAGCOR focuses on casinos and online gambling. PCSO can run charity contests, lotto games, the Small Town Lottery (STL), keno, and scratch-card games all over the country thanks to RA 1169 and its changes.

PCSO’s own rules say that net receipts must be split into fixed amounts of prize funds, charity funds, and running costs. The Charity Fund, which is used for health programs, medical help, and other charitable projects, gets 30% of net receipts.

As PCSO tries out more digital touchpoints for its goods, these rules make sure that the move to online access doesn’t change the main goal of social funding.

In terms of games, this means that the internet market isn’t just about casino-style fun. There are special rules for lotteries and scratch cards, and a certain amount of the money they make goes to public interest spending. This can be an important factor for people who like to support games backed by the government.

Special Economic Zones and Regulated Innovation

Another way the Philippines has helped the gaming business grow is by setting up special economic zones. In their zones, authorities like the Cagayan Economic Zone Authority (CEZA) can host land-based and interactive gaming projects. However, these must still work with national officials and follow the laws set by PD 1869 and RA 9487.

With this way of zoning, controlled environments can be used to build integrated resorts and interactive game hubs, often with infrastructure and investment incentives that are made to fit big projects. It also gives lawmakers another tool. Gaming projects can be used to boost tourism, jobs, and regional growth while still following national standards for licensing and oversight.