The Flourishing iGaming Market in the Philippines: Opportunities and Trends

The Philippines is widely acknowledged as the most open gaming market in Asia, with its supportive stance towards iGaming fostering a thriving industry. During a unique roundtable session, top executives highlighted the key advantages that could propel further growth in the sector.

Dmitry Starostenkov, CEO at Evenbet Gaming, emphasized that “The Philippines has become a gateway to the Southeast Asian online market, being the only regulated jurisdiction for iGaming in the region,” positioning the country for “enormous undiscovered potential” and the chance to attract “numerous companies and startups that are not yet known to global players.” Events such as the ASEAN Gaming Summit and SiGMA Asia have also enabled operators to engage with their clients in open dialogue, promoting growth. Starostenkov further noted, “These factors, vast potential and relative closedness, are already enough to create hype around the Philippines iGaming agenda. If we add the economic situation that is slightly better than average in Southeast Asia, fast technological advancement, and mild licensing conditions, we might say that the country is progressively becoming a prominent iGaming hub.”

Radka Bacheva, Head of Sales and Business Development at Wazdan, praised the Philippines for “its open stance towards foreign investment and ongoing efforts to refine gambling regulations and create a stable and secure environment for operators and players.”

The sector also benefits from strong support by the nation’s gaming regulator, PAGCOR, which regards the eGaming sector as its primary growth focus, despite some controversy and pushback from key politicians. A significant recent development for operators was the reduction in taxation rates for iGaming companies to just 35 percent of gross gaming revenue (GGR) to compete with regional markets. Cora Chen, COO at Dot Connections, commented, “This change is definitely appealing to operators in the grey markets, offering a solution to regulate their business through proper channels. It will undoubtedly create more opportunities for foreign operators by providing a clearer path to enter the market. One of the biggest challenges in the past was the lack of a proper entry method and the high costs associated with breaking even due to the higher remittance rate. As always with regulations, further changes may still come, but for now the market looks promising and welcoming to non-domicile operators.”

Starostenkov added, “There are no actual regional competitors. The closest jurisdiction trying to regulate the online gaming industry is India, and the situation in this country is drastic due to the latest GST (VAT analogue) changes that hit painfully the most developed verticals of fantasy sports, card games, and betting.”

Radka Bacheva of Wazdan explained why operators are choosing the Philippines as a base despite increasing competition: “Wazdan’s insight into the evolving trends shaping the Filipino market allows it to focus on thriving areas, particularly the growing demand for innovative online casino games and jackpot slots.” She added, “Wazdan is poised to become a leading force in this dynamic and rapidly growing market by aligning with the Philippines’ key trends and regulatory landscape.” Starostenkov provided insights into player trends, noting, “The most intriguing player-centric trend here is the immense interest in local games, often unknown to outsiders. When we spoke to our potential customers in the Philippines and mentioned some of the local card games that are possible to create on our platform, a surge of interest followed immediately. The local games are sometimes hard to monetize and earn with, but they can work incredibly well for player acquisition.”

However, some issues remain, which could largely be addressed with cryptocurrency. Starostenkov noted, “The next big trend naturally follows regulation issues and payment processing difficulties: the agent and affiliate-based models to work with players are common. Most agents and agent networks are local and often have a physical presence in the market to process the cash flow. Because of that, using cryptocurrencies in iGaming is also a big thing in the Philippines and Asia in general, and I expect crypto gaming to grow here in the next few years.”

Cora Chen of Dot Connections remarked, “The increased presence of iGaming events in the region, such as ASEAN Gaming Summit and SiGMA, is appealing to regulated Western content providers looking to showcase their games. In addition to traditional slot games, more niche genres are gaining attention.” She also pointed out a higher appeal for “instant win games” among local punters. “For promotions, local operators are leading the way in utilizing social media and influencer marketing to attract a new breed of potential players.”

Overall, the Philippines continues to offer a promising iGaming landscape, with attractive conditions, regulatory support, and further hopes for growth.

By fLEXI tEAM