The Philippine gaming industry is facing the prelude to a policy storm. Malaysia's largest investment bank, Maybank, recently issued a report warning that Philippine President Marcos Jr. might signal a comprehensive ban on online gambling and electronic games in the upcoming State of the Nation Address (SONA).
The report specifically points out that the SONA on July 28 coincides with the first anniversary of Marcos's initial announcement of the ban targeting the Philippine Offshore Gaming Operators (POGO), a timing considered highly symbolic. Bank analyst Rafi Mendoza stated that the current political environment in the Philippines is very similar to the atmosphere when eSabong and POGO were halted last year. Although implementing stricter regulations is a rational choice, a sweeping ban cannot be ruled out.
The market reaction has been noticeably turbulent. The stock price of DigiPlus Interactive Corp, one of the largest online gaming entertainment platform operators in the Philippines, has plummeted 79% from its year-to-date high, reflecting deep investor concerns about policy directions. Additionally, the newly launched gaming resort project MegaFUNalo, operated by Bloomberry Resorts, has also been downgraded from "positive" to "neutral" by the investment bank.
It is noteworthy that the Philippine electronic gaming industry has grown rapidly in recent years, with a 27% year-over-year increase in the first quarter of 2025, contributing 0.68% to the country's nominal GDP, significantly higher than mature gaming markets such as Australia, Canada, the UK, and the USA (contribution rates between 0.04%-0.30%). This means that the implementation of a ban could have a substantial impact on the Philippines' finances and employment levels.
However, PAGCOR (Philippine Amusement and Gaming Corporation) still maintains the current regulatory policy and has not yet indicated any intention to adjust the industry direction. But Maybank points out that political pressure and rising opposition may force the Marcos administration to adopt a more aggressive stance.
Analysts generally believe that the Philippine gaming industry is at a policy crossroads, and failing to balance regulation and development could not only devastate the local economy but also alter the future landscape of the gaming industry in Southeast Asia. The next steps will depend on whether the President will articulate a clearer policy stance in the SONA.
