PAGCOR revenue drops nearly half after e-wallets cut gambling links

The Philippine Amusement and Gaming Corporation (PAGCOR) reported a 49% decline in revenues following the removal of online gambling links from major e-wallet platforms such as GCash and Maya in August.

During a House committee hearing on games and amusements on Wednesday, PAGCOR Assistant Vice President Jessa Mariz Fernandez said the regulator’s monthly income fell to ₱2.9 billion in September, down from ₱5.7 billion in May. She attributed the drop to the Bangko Sentral ng Pilipinas (BSP) directive ordering payment platforms to remove icons and links that redirected users to online gambling sites.

The BSP issued the order on August 14, following a Senate inquiry into stricter regulations or a potential ban on online gambling.

Fernandez said PAGCOR may no longer meet its earlier ₱60-billion revenue forecast for 2025, noting that 60% of the agency’s income comes from online gaming. She added that the regulator has also observed a decline in new online gambling players since the directive took effect.

Under current rules, 30% of gross gaming revenue is remitted to the national government, 25% goes to PAGCOR, and 5% is paid to the Bureau of Internal Revenue as a franchise tax. The remaining 70% stays with licensed gaming operators. As of September, PAGCOR’s total gaming income for the year stood at ₱40.57 billion.

Lawmakers also questioned e-wallet providers about their previous earnings from online gambling transactions. Maya Corporate Affairs Head Toff Rada said gaming operators were treated as merchants, with e-wallets receiving a percentage per transaction, typically around 2% to 3%. GCash confirmed a similar setup but declined to disclose its specific rates, citing confidentiality.

The BSP said it is finalizing new regulations for e-wallets and banks that will include limits on betting amounts, restrictions on gaming top-ups, and a ban on using online loans for gambling. Other planned measures include pop-up alerts, self-exclusion options for users, and a ban on gambling ads and links within financial apps.

Since the removal of in-app gambling links, authorities noted that some players have shifted to unregulated sites. The National Telecommunications Commission (NTC) said it has already blocked 93% of the 13,399 illegal gambling sites reported since 2022.

The revenue decline underscores the growing impact of financial regulations on the country’s online gambling industry and the government’s ongoing effort to curb its social and economic risks.