Philippine Online Gaming Sector Shifts as Compliance Requirements Increase, Report Finds
A new report says stricter compliance rules are reshaping the Philippine online gaming sector, with listed operators posting uneven results in the first quarter of 2026 as the cost of running licensed digital gaming platforms continues to rise. The assessment was made by Diego Cruz for Arden Consult and reviewed several listed companies after the August 2025 delinking of online gaming platforms from in-app e-wallet access points.
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Rules Add Pressure
Cruz said the e-wallet delinking was only part of the story behind the sector’s performance. He pointed to tighter know-your-customer rules, advertising limits, anti-money laundering requirements, supplier accreditation, and other measures as factors that have increased the operating burden for licensed operators.
The report included a disclosure that Arden Consult’s chief executive and head of legal and regulatory, Atty. Marie Antonette Quiogue sits on the board of PhilWeb Corporation as an independent director. Arden said the analysis reflected the author’s views and was based on public disclosures.
Cruz said the explanation centered on a single cause was incomplete, noting that PhilWeb outperformed peers despite operating under the same regulatory environment.
E-Wallet Changes
Bangko Sentral ng Pilipinas instructed all digital wallet providers under its supervision to remove any icon, link, and access point that would direct their customers to the licensed online gambling websites by August 14, 2025, within 48 hours. The report said full disconnection was completed by August 17.
PAGCOR later reported that online gaming transactions fell by about 50% after the measure. The regulator’s monthly income from its share of licensed online gaming gross gaming revenue dropped from around PHP5.7 billion, or $92.9 million, in May 2025 to about PHP2.9 billion, or $47.3 million, by September. That made its original PHP60 billion, or $978 million, full-year GGR target for 2025 unlikely to be met.
The report said, however, that the order did not amount to a payment ban. Players could still fund existing accounts through e-wallets, but they had to leave the wallet app and go directly to operators’ sites, adding friction to the process.
Mixed Operator Results
DigiPlus was recognized as the listed entity at greatest risk from the potential ban, given that it uses the customer-oriented brands such as BingoPlus, ArenaPlus, and GameZone. There was a decrease in the annual revenue of the company from PHP23 billion to PHP17.2 billion ($280.4 million) in the first quarter of 2026, while there was a reduction in the annual EBITDA by 42%, down from PHP4.48 billion to PHP2.6 billion ($42.4 million).
Chairman of DigiPlus, Eusebio Tanco, commented that the first quarter performance was affected by the reduced activity because of the delinking of the licensed gaming platforms from the e-wallet access points.
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Bloomberry Resorts reported different financial results. The Solaire operator registered a net loss of about PHP116 million or $1.9 million, compared to the profit of about PHP3.3 billion or $53.8 million last year. According to the report, there was a 39% reduction in VIP rolling chip volume, 21% decline in mass table revenue, and 22% fall in electronic gaming machine coin-in, along with weaker VIP and premium mass demand.
At the same time, Arden said Bloomberry’s online platform revenue doubled within a single quarter. The group shut down MegaFUNalo! on May 1, 2026, and replaced it with FUNaloMax, which the report said showed continued commitment to online gaming.
DFNN’s weaker performance was attributed to lower online gaming commission income and company-specific cost pressures. Its fiscal 2025 net loss widened 36% to about PHP411 million, or $6.7 million, while general and administrative expenses rose almost 74% year-on-year.
PhilWeb Stands Out
PhilWeb announced first-quarter 2026 sales of roughly PHP233.1 million, or $3.8 million, showing a year-over-year increase of 30%, and a quarterly increase of 33%. The company showed a positive swing from the previous year’s negative EBITDA of PHP3 million, or $49,000, to a positive EBITDA of around PHP23 million, or $375,000, and net income of about PHP14 million, or $228,000.
According to the report, the growth of PhilWeb was due to the company’s managed service business model, whereby land-based casino operators use PhilWeb’s services, providing the PAGCOR licence, brand, and other services in exchange for a percentage of revenue.
PhilWeb’s Online e-Gaming Solutions segment generated about PHP79.3 million, or $1.3 million, in first-quarter 2026 revenue, or around 34% of group revenue, from essentially no contribution a year earlier. Publicly named platform clients include FBM Philippines, Hann Resorts in Clark, Tiger Resort, Newport World Resorts, NUSTAR Online, and PT Gaming.
Compliance Becomes A Sales Pitch
Cruz explained that the growing compliance burden forces operators to choose specialist providers as it includes the use of real-time selfies for verification, increased AML monitoring, pre-clearance of advertisements, supplier accreditation, responsible gaming, and deposits.
The report said the complexity is not a headwind, but the sales pitch. Arden said second-quarter 2026 earnings will be the next major signal on whether operator-level recovery is reaching listed companies, while future regulatory decisions could still alter the environment for licensed participants.
Source: Asia Gaming Brief
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