Compliance Costs Reshape Philippine Gaming Market

A new industry report suggests that tighter regulatory requirements are reshaping the Philippine online gaming market, with licensed operators reporting mixed financial performances in the first quarter of 2026 as compliance costs continue to increase.

The analysis, prepared by Diego Cruz for Arden Consult, reviewed the performance of several publicly listed gaming companies following the removal of licensed online gaming platforms from in-app e-wallet access points in August 2025.

Compliance Requirements Continue to Grow

According to the report, the separation of online gaming services from e-wallet applications is only one factor affecting operator performance.

Cruz noted that stricter know-your-customer (KYC) standards, tighter advertising rules, enhanced anti-money laundering (AML) obligations, supplier accreditation requirements and additional compliance measures have all increased operational costs for licensed operators.

Arden Consult also disclosed that its Chief Executive and Head of Legal and Regulatory, Atty. Marie Antonette Quiogue, serves as an independent director of PhilWeb Corporation. The consultancy stated that the report reflects the author’s own analysis based on publicly available information.

The report argues that attributing market performance solely to the e-wallet policy overlooks broader regulatory developments, pointing out that PhilWeb achieved positive results despite operating under the same regulatory framework.

Impact of the E-Wallet Policy

The Bangko Sentral ng Pilipinas (BSP) instructed supervised digital wallet providers to remove links and shortcuts directing users to licensed online gambling platforms by 14 August 2025, with implementation completed within days.

Although players remained able to fund their gaming accounts through e-wallets, they were required to access operators' websites directly rather than through the wallet applications, adding an extra step to the payment process.

According to PAGCOR, online gaming transactions declined by around 50% following the change. The regulator’s monthly revenue share from licensed online gaming also fell from approximately PHP5.7 billion in May 2025 to around PHP2.9 billion by September, making its original annual gross gaming revenue target more difficult to achieve.

Operators Deliver Mixed Results

Among listed companies, DigiPlus experienced a notable decline in performance.

The company, which operates brands including BingoPlus, ArenaPlus and GameZone, reported first-quarter 2026 revenue of approximately PHP17.2 billion, down from PHP23 billion a year earlier. EBITDA also declined significantly, falling from PHP4.48 billion to PHP2.6 billion.

Chairman Eusebio Tanco attributed the weaker performance to reduced customer activity following the removal of direct e-wallet access.

Bloomberry Resorts, operator of Solaire, also reported weaker results, recording a net loss after posting a profit in the previous year. The company experienced lower VIP rolling chip volumes, reduced mass table revenue and weaker electronic gaming machine activity.

Despite this, the report noted that Bloomberry’s online gaming revenue doubled during the quarter. The company also replaced MegaFUNalo! with FUNaloMax in May 2026, maintaining its focus on digital gaming.

DFNN reported lower online gaming commission income alongside higher operating expenses, contributing to a wider net loss for fiscal 2025.

PhilWeb Reports Strong Growth

PhilWeb stood out among the companies reviewed.

The business reported first-quarter 2026 revenue of approximately PHP233.1 million, representing growth compared with both the previous quarter and the same period last year.

The company also returned to positive EBITDA and recorded net income after reporting losses in the previous year.

According to the report, PhilWeb’s performance was supported by its managed services model, under which land-based casino operators use the company’s technology, branding and licensed services in exchange for a share of revenue.

Its Online e-Gaming Solutions division contributed around PHP79.3 million during the quarter. Publicly identified platform clients include FBM Philippines, Hann Resorts, Tiger Resort, Newport World Resorts, NUSTAR Online and PT Gaming.

Compliance Seen as a Competitive Advantage

Cruz concluded that the increasing complexity of regulatory requirements is encouraging operators to rely more heavily on specialist technology and compliance providers.

The report noted that real-time identity verification, expanded AML monitoring, advertising approvals, supplier accreditation, responsible gaming controls and deposit management are becoming essential components of operating licensed online gaming platforms.

Rather than viewing these requirements solely as additional costs, Arden Consult suggested they are increasingly becoming a competitive advantage for companies capable of delivering compliant gaming solutions.

The report added that second-quarter 2026 financial results will provide a clearer indication of whether recovery is spreading across the sector, while future regulatory decisions could continue to influence the direction of the Philippine online gaming market.