The Philippine Casino and Integrated Resort Industry, and POGO — PAGCOR as Regulator and Operator, Entertainment City, and the 2024 Total Ban

As of 2026-08-30 · Updated 2026-08-30 · Section: Economy, Industry & Business · 日本語版

0. Summary of This Article

The total ban on POGO (Philippine Offshore Gaming Operators), which President Marcos announced in his State of the Nation Address (SONA) on July 22, 2024, was the single most economically consequential policy shift in Philippine economic policy in 2024. It was a decision to voluntarily give up roughly ₱23 billion a year in government revenue and about 63,000 jobs (per PAGCOR Chairman Alejandro Tengco, as of July 2024), and its ripples reached the office and residential real estate markets, public security, and relations with China.

The domestic casino industry, meanwhile, followed a different trajectory. Industrywide GGR (Gross Gaming Revenue) grew to ₱396,138,802,763.57 in 2025 (per PAGCOR's "2025 Philippine Gaming Industry Data"), but has sharply decelerated in 2026.

1. PAGCOR — Both Regulator and Operator

1-1. Legal Basis (Confirmed Against Original Statutory Text)

RA 9487 Sec. 1 extended the franchise, starting July 11, 2008, for "another period of twenty-five (25) years, renewable for another twenty-five (25) years." So the current franchise runs through July 2033, extendable to 2058 upon renewal. The same section also restricts the placement of slot machines and similar equipment to hotels and resorts of at least 3-star DOT accreditation.

RA 9487 Sec. 2 amended PD 1869 Sec. 3(h) to allow PAGCOR to enter "contracts of every kind" — investment contracts, joint ventures, management contracts. This is the provision that enables the licensed-IR (Integrated Resort) model.

PD 1869 Sec. 13(2)(a) sets "a Franchise Tax of five (5%) percent of the gross revenue or earnings" "in lieu of all kinds of taxes, levies, fees or assessments." Sec. 12 provides that, after deducting the franchise tax, the government receives 50% of gross revenue (60% if gross revenue is below ₱150 million).

注 A common error is conflating PAGCOR's "50% remittance to the National Treasury" with corporate income tax. This is in fact a separate "government share," distinct from the 5% franchise tax, grounded in PD 1869 Sec. 12.

1-2. The Dual-Role Structural Problem

PAGCOR wears three hats simultaneously.

1. Regulator — licensing and supervising all casinos, electronic games, and bingo (PD 1869 Sec. 9)
2. Operator — directly runs its own brand, "Casino Filipino," at over 40 locations nationwide
3. Revenue agency — allocates earnings to the National Treasury, sports, health, and more

It has long been criticized for being in the position of reviewing and disciplining its own competitors. The concept meant to resolve this is "decoupling" — privatizing Casino Filipino.

1-3. Progress on Privatization (Decoupling) — 2025–2026

Chairman Tengco said in July 2026, "The Office of the President will study that so it will be at end of this year. It will be done through an Executive Order" (IAG, 2026-07-19).

注 "It could sell for ₱50 billion" is an estimate, not a settled valuation. There have also been reports that buyers are balking at the requirement to retain existing employees (Manila Bulletin, 2026-07-27). Privatization is expected to proceed via executive order, with no new legislation assumed as a prerequisite.

1-4. Contribution to Government Revenue (figures per the original tables)

PAGCOR's net income for H1 2026 fell to ₱1.58B (-85.29%). Net operating income was ₱31.75B (-35.05%), but an increase in statutory remittances to the Philippine Sports Commission (PSC) crushed net income (PAGCOR, 2026-07-30).

For full-year 2026, Chairman Tengco has stated he expects revenue of ₱86.9 billion (-18% year-on-year) (IAG, 2026-08-25).

1-5. Three Headwinds in 2026

1. The BSP's (central bank's) decoupling of e-wallets from online gaming — Chairman Tengco said, "After that was implemented, we experienced a downtrend of around 40% in gaming activities" (IAG, 2026-08-25). In January 2026, PAGCOR was preparing to submit a position paper to the BSP seeking a reversal (IAG, 2026-01-21).
2. A ₱37 billion debt to the PSC — A final Supreme Court ruling confirmed PAGCOR's obligation to remit 5% of total revenue since 1993 to the PSC. It is being paid in installments over up to 10 years, at roughly ₱300 million a month (IAG, 2026-08-25 / Focus Gaming News, 2026-01-15). The basis is RA 6847 (the Philippine Sports Commission Act). PCSO (the Philippine Charity Sweepstakes Office) was likewise ordered to remit 30% of net proceeds from six lottery draws since 2006.
3. Tighter advertising regulation — In July 2025, PAGCOR ordered the removal of outdoor gambling advertisements; on June 9, 2026, it ordered that existing responsible-gaming ads be replaced with notices for the National Problem Gambling Helpline (NPGH, launched May 26, 2026) (covering billboards, wallscapes, and digital displays; the deadline was July 15, 2026, with display permitted through September 15 of the same year) (PAGCOR, 2026-06-17).

2. The Actual GGR Figures — From PAGCOR's Original Tables

2-1. Total Trend

注 Note that older and newer figures are being mixed up. In February 2025, GMA Network and others reported that "2024 gaming revenue was ₱410.5B," but PAGCOR's later, confirmed original table gives ₱372.33B. The +6.39% for 2025 is also calculated off ₱372.33B (372.33 × 1.0639 ≈ 396.1), so a comparison anchored on ₱410.5B does not hold up. If a Japanese-language article states "₱410 billion in 2024," it should be checked.

2-2. By Segment (PAGCOR's original table, in pesos)

A structural shift is underway. From 2024 to 2025, brick-and-mortar casinos declined (EC/NCR down 9.4%), while eGames (online) surged +36.5%, reaching ₱185.2 billion on its own. About 47% of the industry's 2025 GGR was eGames. Chairman Tengco has stated that eGames accounted for 56% of PAGCOR's own revenue in 2025 (₱53.3 billion) (IAG, 2026-02-26).

The 2025 quarterly trend was Q1 ₱104.12B → Q2 ₱110.63B → Q3 ₱94.52B → Q4 ₱86.87B, a weakening in the second half, so the 2026 downturn had already begun in the second half of 2025.

The Q2 2026 breakdown was licensed casinos ₱45.37B (51.49%), electronic games ₱39.85B (45.21%), Casino Filipino ₱2.90B (3.30%). Chairman Tengco explained that "inflation and Middle East geopolitical crises squeezed discretionary spending" (PAGCOR statement).

3. Entertainment City (Manila Bay Area)

A roughly 100-ha bayside gaming enclave developed by PAGCOR. 注 Regarding total land area and total investment, no primary source could be reached, so this section covers only the individual operators' results.

3-1. The Big Four IRs Today

New opening: Westside Resort within Entertainment City (80% owned by AGI, developed by Suntrust Home Developers) is nearing opening. IDX Games has secured a contract to supply systems for 250 tables (IAG, 2026-04-22). In June 2024, President Marcos himself referenced Westside City's tourism-boosting effect.

3-2. Okada Manila — The Full Timeline of the Management Dispute

The most misunderstood topic in Japanese-language coverage, so only confirmed facts are presented here, in chronological order.

注 The 2022-era understanding that "the Supreme Court recognized Okada's control" was later reversed. The SQAO was only a provisional restoration order; the ruling on the merits went the other way. 注 Also, 注 primary source not reached — this article could not access the G.R. number or full text of this Supreme Court resolution, so the above is sourced from reporting (Inside Asian Gaming) based on Universal Entertainment's timely disclosures.

4. Integrated Resorts in Clark and Cebu

注 PAGCOR's original table breaks the country into four regions — "Entertainment City/NCR," "Clark," "Greenfield," and "Fiesta" — and Cebu is not a standalone line item. Whenever a figure for "the size of Cebu's casino market" appears, its source must always be checked.

5. POGO — From Founding to Total Ban

5-1. Origins (from 2016)

In 2016, under the Duterte administration, PAGCOR launched a licensing regime for offshore (foreign-customer-facing) online gambling. The setup based operators in the Philippines while prohibiting them from taking bets from customers inside the Philippines, with mainland Chinese players as the primary customer base. 注 Primary source not reached — the original PAGCOR regulation establishing the system (its issuance date and regulation number) could not be located. What follows is drawn only from facts confirmed in tax law and annual reports.

RA 11590 (approved September 22, 2021, the POGO taxation law; official title "AN ACT TAXING PHILIPPINE OFFSHORE GAMING OPERATIONS…") lets us confirm the framework of the system through its text. (Approval date added in the 2026-08-26 verification pass; source: the "Approved" line at the end of RA 11590's original text on LawPhil.)

This RA 11590 was later repealed by RA 12312 (2025).

5-2. Peak-Era Scale (Confirmed Figures)

注 Figures such as "298 operators at peak," "300,000 Chinese workers at peak," or "over 1 million sqm of office space" circulate widely in Japanese-language sources, but none of them could be reached in a primary source. The maximum figures officially acknowledged by PAGCOR are as shown above. In 2023, the terminology shifted from "POGO" to "IGL (Internet Gaming Licensee)" (to soften the negative connotation), so care is needed regarding the switchover timing when comparing statistics.

5-3. The Road to the Ban

注 Note the gap between the "signing date" and the "publication date." RA 12312's approval date is October 23, 2025 (LawPhil original text), but news reports carry an October 29–30 date. A Japanese-language article stating "enacted October 29" is referring to the publication date.

5-4. The Content of RA 12312 (the Anti-POGO Act of 2025)

The statutory structure confirmed from the original text on LawPhil is as follows.

This structure matters a great deal. EO 74 is an executive order, so a future administration could reverse it, but RA 12312 is a statute, and reviving POGO would require legislative amendment or repeal. By simultaneously repealing RA 11590, the very vessel for taxation disappeared. In other words, the "regulate and tax it" option is now foreclosed by law.

5-5. The Full Timeline of the Alice Guo Case

注 Misinformation about the timing of the raid circulates. The Bamban, Tarlac raid occurred on March 13, 2024, not in May. May–June was when Guo's Senate testimony and the controversy over her identity blew up, and this period is often confused with the raid itself.

注 On land area as well: the Zun Yuan facility is reported as "36 buildings on roughly 10 ha," while the forfeited land is "7.9 ha." The full site and the forfeited parcel are separate concepts and should not be conflated.

注A large number of foreign reports place the raid in "June 2024." (For example, CNN and Rappler's English-language articles refer to "the June 2024 raid on a POGO hub in Guo's town.") This is a mix-up with the separate Lucky South 99 raid in Porac, Pampanga Province on June 4–5 of the same year. Zun Yuan/Bamban was March 13, 2024. The rescued headcount also differs by source and moved over time: Bamban was 875 (the official PAOCC/PNA figure), while Inquirer reported "371 Filipinos + 497 foreigners = 868," SunStar reported "nearly 900," and Rappler's first report said "408." Porac was a separate case with separate numbers: 187 people (158 foreigners + 29 Filipinos) (added in the 2026-08-26 verification pass).

注 Primary source not reached (remaining) — the Pasig RTC's decision itself (case number, full text) could not be accessed. The 2026-08-26 verification pass confirmed, from reporting (Philstar, GMA, Daily Tribune, IAG, 2025-11-20 to 21), that the court = Pasig RTC Branch 167 / judge = Annielyn Medes-Cabelis / length of decision = 111 pages. The figures remain report-based.

6. The Economic Impact — Office and Residential Markets

6-1. The Office Market

It is the IT-BPM (BPO) sector that filled the space POGO vacated. Leechiu Property Consultants said in April 2025 that "the IT and outsourcing sector is driving an office-market recovery despite POGO's exit," and in July 2025 called it "the strongest leasing surge since the pandemic" (InsiderPH, 2025-04-17 / 2025-07-10).

注 Still, a 19% vacancy rate remains elevated, so it cannot be said that "BPO absorbed the space completely." 注 Primary source not reached — this article could not access the original real estate consultants' reports for the square-meter figure of the office space POGO returned to the market. Circulating figures such as "1 million sqm" have not been substantiated.

6-2. The Condominium Market — Where the Wound Runs Deeper

The Bay Area's nearly-60% vacancy rate most vividly captures the economic cost of the POGO ban. The Bay Area (Manila Bay coast / Pasay-Parañaque), adjacent to Entertainment City, saw a construction boom driven by housing demand from POGO employees. 注 It should also be accurately reported that Colliers' Q1 2026 report does not directly name POGO's exit as the cause — oversupply, high interest rates, inflation, and geopolitical uncertainty are cited alongside it.

6-3. Effect on International Standing

On February 21, 2025, the FATF (Financial Action Task Force) removed the Philippines from "increased monitoring" (the grey list). FATF's own text stated, "The Philippines has completed their Action Plan to resolve the identified strategic deficiencies within agreed timeframes and will no longer be subject to the FATF's increased monitoring process," attributing the removal to a successful on-site visit (FATF, Paris, February 21, 2025). Improved anti-money-laundering measures in the casino sector are cited as one factor in the assessment (IAG, 2026-02-26).

7. The Reality of Illegal Operations That Persist After the Ban

Every license has vanished, but the business has not. As of March 2025, PAGCOR stated plainly that "all licenses have been revoked, but illegal POGOs still exist" (PNA, 2025-03-04).

7-1. Continued Raids (Confirmed Cases)

7-2. What's Actually Happening

1. "Evolution" and "relocation abroad" — Manila Bulletin reported on July 17, 2026, "Cyber scams evolve as syndicates outmaneuver Marcos POGO ban." The June 2026 Cambodia trafficking case suggests hubs are moving offshore, with the Philippines increasingly becoming a supply-side country (a source of trafficking victims).
2. Downsizing and dispersal — A Senate committee report warned in February 2025 of POGO's "evolution" (PNA, 2025-02-04). PAOCC said starting in 2025 it would target "small-scale" POGOs (Philstar, 2024-12-31). The South China Morning Post reported in February 2025 on concerns that scam operations were becoming a "cottage industry."
3. Disguising as BPOs — A "POGO hub disguised as a BPO" was raided in Bataan Province in November 2024 (Bilyonaryo, 2024-11-01). Senator Risa Hontiveros had already warned of "rebranding" before the ban took effect (GMA, 2024-09-02).
4. Hiding in downtown office buildings — Cases have emerged of hubs operating inside Grade-A office towers, as with Makati's RCBC Plaza (March 2025).

These crime types are not simple illegal gambling but a composite of human trafficking, unlawful detention, torture, crypto scams (so-called "pig-butchering"), and money laundering. The Zun Yuan/Bamban case is the archetype, and the verdict treated all of these as a single whole (IAG, 2025-11-20).

8. Summary — The State of Play as of August 2026

If the 2024 policy shift must be summed up in one line, it is this: "a wager that traded ₱23 billion a year in tax revenue and 63,000 jobs to try to buy back the country's reputation (exiting the FATF grey list) and its public security." The FATF delisting materialized in February 2025. But the criminal networks did not disappear — they changed shape — and the damage to real estate markets continued into 2026. And ironically, what hurt PAGCOR most in 2026 was not the POGO ban but its own central bank's regulation of domestic online gambling (eGames).

Key Sources

Primary sources - LawPhil Project: RA 9487 (approved 2007-06-20) / RA 11590 (approved 2021-09-22, date confirmed 2026-08-26) / RA 12312, "Anti-POGO Act of 2025" (approved 2025-10-23) / Executive Order No. 74, s.2024 (signed 2024-11-05) - Chan Robles Virtual Law Library: Presidential Decree No. 1869 (Sec. 9 / Sec. 12 / Sec. 13(2)(a)) - PAGCOR, "2024 Philippine Gaming Industry Data" / "2025 Philippine Gaming Industry Data" (https://www.pagcor.ph/regulatory/industry_statistic.php) - PAGCOR 2023 Annual Report (https://www.pagcor.ph/annual-reports/pagcor-annual-report-2023.pdf) - PAGCOR official releases: H1 2026 results (2026-07-30) / Q2 2026 industry statistics / advertising-replacement order (2026-06-17) / 2025 dividend of ₱5.67B (2026-07-10) - FATF, "Outcomes FATF Plenary, February 2025" (2025-02-21, Paris)

Secondary sources - Inside Asian Gaming (asgam.com): 2024-07-24 / 2024-12-18 / 2023-11-27 / 2025-11-20 / 2026-02-26 / 2026-07-19 / 2026-08-21 / 2026-08-25, among others - Colliers Philippines: Property Market Report — Office Q2 2026 / Residential Q1 2026 - Inquirer.net, Philstar.com, Rappler, Manila Bulletin, GMA Network, Philippine News Agency, Focus Gaming News, Asia Gaming Brief, MindaNews, South China Morning Post, Al Jazeera (dates for individual articles are given in the text)

注 Items this article explicitly flags as "primary source not reached": ① the original PAGCOR regulation establishing the POGO system in 2016; ② the full text and G.R. number of the Supreme Court resolution in the Okada Manila case; ③ the Pasig RTC's decision text in the Alice Guo case; ④ measured figures for the office floor space POGO returned to the market; ⑤ facility-level GGR for Cebu's IRs; ⑥ the original UNODC report on Southeast Asian scam hubs. The figures in the text on these points should not be treated as definitive.

日本語の詳細版: 分野「産業・経済」「フィリピンのカジノ・IR産業とPOGO」（本サイト日本語版）。