The Philippine online gambling industry is undergoing a structural reshuffle driven by tighter regulation and adjustments in payment links. According to the latest industry report by analyst Diego Cruz, since the implementation of the e-wallet entry adjustment in August 2025, several listed operators have reported vastly different performances in the first quarter of 2026. The PASA official website notes that on one side, compliance costs are increasing layer by layer, while on the other, performance is rapidly diverging—this "compliance storm" is redrawing the industry's starting line.
The "cut-off" of e-wallets is a misunderstanding: the door isn't closed, the path is just longer
The report first clarifies a key point repeatedly misunderstood by the market: the so-called "wallet entry cut-off" is not about closing payment channels, but about adding operational steps. According to the requirements of the Bangko Sentral ng Pilipinas, e-wallet platforms like GCash and Maya need to remove direct access to online gambling apps within 48 hours. Simply put, players can still make deposits, but they have to go around from outside the app, which suddenly raises the operational threshold.
The data is equally straightforward. PAGCOR disclosed that after the policy implementation, the scale of online gambling transactions dropped by about 50%, and gambling revenue shrank from approximately 5.7 billion pesos in May 2025 to 2.9 billion pesos in September, putting pressure on the annual target. Industry insiders generally believe that this does not mean "payment was cut off," but rather that the experience path has lengthened—precisely the link where user activity is most likely to be lost.
Q1 performance divergence: some are hit hard, others reap benefits
Entering the first quarter of 2026, the performance of various companies began to show clear divisions, colloquially speaking, "the dry are drying out, the flooded are drowning."
DigiPlus Interactive was most directly impacted, with revenue falling by about 25% year-on-year, and profits and EBITDA simultaneously declining. Management attributed this to the decrease in user activity and increased transaction friction caused by e-wallet adjustments. The report used a vivid metaphor: "The people are still there, but the path they walk in has lengthened."
The situation at Bloomberry Resorts, however, shows a sense of tearing: overall net profits turned into losses, but revenue from online entertainment business doubled. Traditional VIP and physical gambling were significantly pressured, while the online entertainment sector somewhat "counterbalanced" in adversity, a striking structural change.
DFNN faced pressure on both ends, with net losses further expanding and no significant relief in operational cost burdens.
In contrast, PhilWeb Corporation became the most notable "exceptional sample" in the industry. The company achieved growth in both revenue and profits in the first quarter of 2026. Its business model relies more on "managed services + technical support" rather than needing heavy assets like traditional operators. Its logic is more about "building underlying systems"—not directly competing for players at the front desk, but providing platforms, content, and operational support, and taking a cut from these. In a regulatory tightening environment, this lighter model is more flexible and adapts quicker to rule changes.
Compliance as a barrier: cost items can also become selling points
The report further points out that the industry is increasingly wrapped in layers of compliance requirements, including real-time identity verification, anti-money laundering monitoring, advertising approval, supplier qualification review, and responsible gambling mechanisms. Layer by layer, the operating environment indeed becomes heavier, but it also simultaneously raises the entry threshold.
Interestingly, analysts have thrown out a somewhat counterintuitive judgment: complexity is not just a burden, to some extent, it has also become a new business selling point—whoever can adapt to the rules is more likely to stay. This is also the direction PASA's official website has been tracking for a long time: compliance capability is transforming from a backstage cost item into a front-stage competitive strength.
Outlook: Q2 financial reports as a key indicator
The report believes that the financial reports for the second quarter of 2026 will be a key window to judge the direction of the industry. Whether regulation further relaxes e-wallet entries or new adjustments to online gambling policies occur could once again change the industry's rhythm. For operators, rather than betting on policy relaxation, it's better to focus resources on compliance adaptation and user experience optimization—after all, although the path has deviated a bit, as long as players are willing to continue, the market is still there. This industry, standing at the juncture of change, is far from a stable period.
————
This article is from "PASA-Global iGaming Leader" gambling industry news channel:https://t.me/pasa_news
Original deep gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
