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Is Gambling Legal in Philippines?

Regulated
Gambling is legal and regulated; land-based and online gambling require licenses, with most operations overseen by the Philippine Amusement and Gaming Corporation (PAGCOR). Offshore online gambling for foreign players is being phased out.
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    Key Information Highlights Legislation Timeline Requirements Sources

    Key Information

    Last Update 2025
    Regulatory Authority Philippine Amusement and Gaming Corporation (PAGCOR)
    License Cost Varies

    Regulation by Activity Type

    Casinos Regulated
    Online Casinos Regulated
    Betting Regulated
    Online Betting Regulated
    Lotteries Regulated
    Poker Regulated

    Highlights

    • All gambling is illegal in the Philippines unless specifically licensed and regulated by government authorities.
    • The Philippine Amusement and Gaming Corporation (PAGCOR) is the main regulator, issuing licenses for land-based and online gambling.
    • A nationwide ban on Philippine Offshore Gaming Operators (POGOs) was announced in July 2024, with operations to cease by end of 2024.
    • From January 2025, PAGCOR will reduce license fees for land-based casinos to 30% and to 25% for integrated resorts with igaming.
    • Online gambling targeting Philippine residents is regulated separately from offshore operations, with local and national licensing requirements.
    • Non-compliance with gambling laws can result in severe penalties, including license revocation, fines, and criminal liability.
    • Special economic zones like CEZA and AFAB can license online gambling for foreign markets, but not for Philippine residents.
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      Legislation

      Primary Legislation

      The legal framework governing gambling in the Philippines is defined by a set of national laws, presidential decrees, and special acts that establish the scope and boundaries of legal gambling activities. The major legislative instruments currently in force include:
      • Presidential Decree No. 1067-A (as amended) – This decree created the Philippine Amusement and Gaming Corporation (PAGCOR) and granted it the authority to regulate, operate, and license games of chance, gaming clubs, and casinos throughout the country, except for those already covered by other franchises or special laws.
      • Presidential Decree No. 1602 – This decree prescribes penalties for illegal gambling and serves as the general anti-illegal gambling statute, criminalizing unauthorized gambling activities.
      • Republic Act No. 9287 – This act increases penalties for illegal numbers games and amends certain provisions of PD 1602, specifically targeting illegal lottery-type operations.
      • Executive Order No. 13 (2017) – This order clarifies the scope of illegal gambling and emphasizes that all gambling is prohibited unless expressly authorized by law and regulated by the appropriate government agency.
      • Republic Act No. 7922 – This act establishes the Cagayan Special Economic Zone and Freeport (CSEZFP), allowing for a separate regulatory regime for gaming and online gambling activities within the zone, distinct from PAGCOR’s authority.
      These laws collectively establish that all gambling activities in the Philippines are illegal unless specifically authorized and regulated under the abovementioned statutes or through special franchises. The framework also distinguishes between various forms of gambling, such as casinos, lotteries, horse racing, and online gaming, each subject to regulation by designated authorities.

      Regulatory Authority

      Oversight and regulation of gambling in the Philippines are carried out by several government bodies, each with jurisdiction over specific types of gambling activities:
      • Philippine Amusement and Gaming Corporation (PAGCOR)
        • Central authority for regulating and licensing most forms of gambling, including land-based and online casinos, electronic gaming, and integrated resorts outside special economic zones.
        • Issues regulatory manuals and promulgates rules for both on-site and online gaming operations.
      • Philippine Charity Sweepstakes Office (PCSO)
        • Regulates and operates lotteries and sweepstakes, including various number games, to raise funds for health and welfare programs.
      • Philippine Racing Commission (PHILRACOM)
        • Regulates horse racing events and related betting activities.
      • Games and Amusements Board (GAB)
        • Oversees betting on professional sports and other amusement games not covered by PAGCOR or PCSO.
      • Cagayan Economic Zone Authority (CEZA)
        • Supervises and regulates gaming activities, particularly online gambling, within the Cagayan Special Economic Zone and Freeport, through its designated master licensor.
      These authorities are mandated to ensure that gambling activities are conducted within the legal framework, prevent illegal gambling, and enforce compliance with national policies and regulations.

      License Types

      Types of Gambling Licenses in the Philippines

      • Land-Based Casino Licenses: Issued by the Philippine Amusement and Gaming Corporation (PAGCOR) for the operation of integrated resorts, standalone casinos, and gaming arcades within the country.
      • Philippine Inland Gaming Operator (PIGO) Licenses: Allow local online gaming for Filipino residents, including e-casinos and sports betting, regulated by PAGCOR.
      • Electronic Gaming Sites (E-Games/E-Bingo): Licenses for operators running electronic gaming outlets and bingo parlors, primarily for local players.
      • Special Economic Zone Licenses: Cagayan Special Economic Zone and Freeport, through First Cagayan Leisure and Resort Corporation (FCLRC), issues licenses for online gaming targeting foreign players only.
      • Service Provider Licenses: For companies supplying gaming systems, platforms, or other support services to licensed operators.

      Application Process and Duration

      • Submission of Application: Applicants must submit a comprehensive application to PAGCOR (or FCLRC for Cagayan Zone), including business plans, corporate documents, technical and financial details, and compliance policies.
      • Due Diligence: Regulatory authorities conduct background checks, financial capability assessments, and technical evaluations.
      • Approval and Issuance: Upon satisfactory review, a provisional license may be issued, followed by a full license after compliance with all requirements.
      • Duration: Licenses are typically valid for one to five years, depending on the type and regulatory body. Renewal is subject to continued compliance and payment of renewal fees.

      Eligibility and Key Requirements

      • Corporate Structure: Applicants must be duly registered corporations in the Philippines or, for foreign operators, establish a local subsidiary or branch.
      • Financial Capacity: Proof of sufficient capital and financial stability is required, including audited financial statements and bank certifications.
      • Technical Capability: Operators must demonstrate secure, fair, and reliable gaming systems, often subject to third-party certification.
      • Compliance Programs: Mandatory anti-money laundering (AML), responsible gaming, and player protection policies.
      • Fit and Proper Test: Key officers and shareholders must pass background checks for integrity and suitability.

      Licensing Costs and Financial Requirements

      License Type Application Fee Annual Fee / Regulatory Fee Other Financial Requirements
      Land-Based Casino ₱100,000 - ₱500,000 (varies by scale) 30% of gross gaming revenue (from Jan 2025) Performance bond, minimum paid-up capital (amount varies by project size)
      Integrated Resort with iGaming ₱500,000+ 25% of gross gaming revenue (from Jan 2025) Higher capital and compliance requirements
      PIGO (Local Online Gaming) ₱100,000+ Set by PAGCOR, typically a percentage of GGR Technical certification costs, compliance deposits
      E-Games/E-Bingo ₱50,000+ Annual regulatory fee plus share of revenue Site-specific requirements
      Special Economic Zone (FCLRC) USD 40,000+ Annual fee plus share of revenue (varies) Offshore player targeting only, capital requirements

      Renewal and Maintenance Conditions

      • Regular Audits: Operators must undergo periodic compliance and financial audits by the regulator.
      • Continued Compliance: Ongoing adherence to technical, financial, and responsible gaming standards is mandatory.
      • Renewal Application: Submitted prior to license expiry, including updated documentation and payment of renewal fees.
      • Non-Compliance Penalties: Failure to meet requirements can result in suspension, revocation, or monetary fines.

      Summary Table: Key Licensing Aspects

      Aspect Details
      Regulator PAGCOR (mainland), FCLRC (Cagayan Zone)
      License Duration 1-5 years (renewable)
      Eligibility Registered corporations, financial and technical capability, fit and proper management
      Key Requirements Business plan, AML policies, technical certification, responsible gaming programs
      Costs Application fee, annual regulatory fee, revenue share, performance bond
      Renewal Subject to compliance, audit, and updated documentation
      The Philippine gambling licensing system is comprehensive and multi-tiered, with PAGCOR as the primary regulator for most forms of gambling, and FCLRC for the Cagayan Special Economic Zone. Operators must meet strict eligibility, financial, and compliance requirements, and are subject to regular review and renewal conditions. Costs and procedures vary by license type and scale of operations.

      Gambling Tax

      Tax Rates for Gambling Operators in the Philippines

      The taxation system for gambling operators in the Philippines is structured primarily around gross gaming revenue (GGR) and varies depending on the type of operation. Below is a summary of the current and upcoming tax rates for different gambling segments:
      Type of Gambling Operation Tax Rate (2024) Tax Rate (from Jan 1, 2025) Basis for Taxation
      Land-based casinos (PAGCOR licensees) 35% of GGR 30% of GGR Gross Gaming Revenue (GGR)
      Integrated resorts with iGaming 35% of GGR 25% of GGR Gross Gaming Revenue (GGR)
      Other licensed gaming operators 35% of GGR 30% of GGR Gross Gaming Revenue (GGR)
      Philippine Offshore Gaming Operators (POGOs) Banned as of December 31, 2024
      • For most gambling operators, the primary tax is levied on GGR, which is the total bets received minus winnings paid out to players.
      • Additional local taxes and regulatory fees may also apply, depending on the operator’s location and scope.

      Tax Reporting and Payment Procedures

      • Operators are required to file regular tax returns with the Bureau of Internal Revenue (BIR) and the Philippine Amusement and Gaming Corporation (PAGCOR).
      • Tax payments are generally due monthly or quarterly, depending on the specific guidelines set by PAGCOR and the BIR.
      • Operators must maintain detailed records of all gaming transactions, GGR calculations, and supporting documentation for audit purposes.
      • Failure to comply with tax filing and payment requirements can result in penalties, interest, and potential suspension or revocation of gaming licenses.

      Tax Incentives, Exemptions, and Special Provisions

      • From January 1, 2025, the reduction in tax rates for both land-based and integrated resort operators is intended as an incentive to attract investment and support industry growth.
      • There are no broad exemptions from GGR-based taxation for licensed operators; however, operators in special economic zones (such as Cagayan) may be subject to different local tax regimes or incentives, subject to regulatory approval.
      • Philippine Offshore Gaming Operators (POGOs) are banned as of December 31, 2024, and are no longer subject to the previous offshore gaming tax regime.
      • No other significant tax holidays or blanket exemptions currently apply to mainstream gambling operators under PAGCOR’s jurisdiction.

      Prohibited Individuals

      Age Restrictions and Identification Requirements

      The minimum legal age for participation in any form of gambling in the Philippines is 21 years old. This restriction applies to both land-based and online gambling activities. Operators are required to verify the age of all players through valid government-issued identification documents before allowing entry to gambling venues or access to gambling platforms. Strict penalties are imposed on operators who permit underage individuals to participate. These age and identification requirements are enforced across all regulated gambling establishments, including casinos and betting outlets.

      Prohibited Types of Gambling Activities and Game Restrictions

      • All gambling activities are prohibited unless specifically authorized and licensed by the relevant government agency.
      • Unlicensed gambling, including unauthorized online gambling, illegal numbers games (such as “Last Two”), and unregulated betting operations, is strictly forbidden and subject to criminal penalties.
      • Online gambling operators licensed in the Philippines are generally prohibited from offering their services to Philippine residents; they may only serve foreign players unless otherwise authorized.
      • Certain forms of gambling, such as unlicensed lotteries, underground cockfighting, and unauthorized betting on sports or e-sports, are explicitly banned.
      • Special restrictions may apply to specific types of games, such as high-stakes betting or games linked to money laundering risks, with enhanced monitoring and reporting obligations for operators.

      Advertising and Marketing Limitations

      • Gambling advertising must not target individuals under the age of 21 or depict gambling as a means to financial success or personal achievement.
      • All marketing materials must include clear messages about responsible gambling and the risks associated with gambling.
      • Advertisements are prohibited in media and locations primarily accessed by minors, such as schools and youth-oriented platforms.
      • Operators are restricted from offering misleading promotions, bonuses, or inducements that could encourage excessive or irresponsible gambling behavior.
      • Online advertising is subject to additional scrutiny, with restrictions on digital marketplaces and platforms from associating with or promoting gambling products.

      Responsible Gambling and Player Protection Measures

      • Operators must provide clear information about responsible gambling, including access to self-exclusion programs and helplines for problem gambling.
      • Mandatory self-exclusion and voluntary exclusion schemes are available, allowing players to restrict their own access to gambling facilities and platforms.
      • Operators are required to implement mechanisms for players to set deposit, loss, and time limits on their gambling activities.
      • Staff at gambling venues must be trained to identify and assist individuals exhibiting signs of problem gambling.
      • Operators must comply with anti-money laundering regulations, including monitoring and reporting large or suspicious transactions to authorities.
      • Data privacy and consumer protection laws require operators to safeguard player information and provide fair dispute resolution processes.

      Geographic and Location Restrictions

      • Land-based casinos and gambling venues are only permitted in designated zones, such as Entertainment City in Manila, Clark, and other authorized areas.
      • Some special economic zones, like the Cagayan Freeport, have specific rules regarding who may access gambling services, although Filipinos staying as tourists in these zones may participate under certain conditions.
      • Local government units may impose additional restrictions on the location and operation of gambling establishments within their jurisdictions.
      • Online gambling operators licensed in the Philippines are generally restricted from offering services to residents within the country, focusing instead on foreign markets.
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        Timeline

        Year/Date Event
        1976 Establishment of the Philippine Amusement and Gaming Corporation (PAGCOR) by Presidential Decree No. 1067-A, granting it authority to regulate and operate gambling casinos and gaming activities in the Philippines.
        1977 PAGCOR officially begins operations, consolidating government control over legal gambling activities.
        1983 Enactment of Presidential Decree No. 1602, imposing stiffer penalties for illegal gambling and clarifying the definition of illegal gambling activities.
        1995 Creation of the Cagayan Special Economic Zone and Freeport (CSEZFP) via Republic Act No. 7922, establishing a separate regulatory jurisdiction for gaming, including online gambling, in the Cagayan region.
        2000 Republic Act No. 9287 increases penalties for illegal numbers games, further strengthening anti-illegal gambling measures.
        2016 PAGCOR introduces the Philippine Offshore Gaming Operator (POGO) licensing regime, regulating online gambling operations targeting foreign players outside the Philippines.
        2018 PAGCOR launches the Philippine Inland Gaming Operator (PIGO) licensing regime, allowing licensed online gaming for domestic players under strict regulation.
        2017 Executive Order No. 13 expands the definition of illegal gambling and clarifies the powers of regulatory agencies to enforce gambling laws.
        2024 President Ferdinand Marcos Jr. announces a nationwide ban on POGOs due to links to criminal activity, with a wind-down period until December 31, 2024.
        2025 Ongoing policy reviews and further regulatory tightening, including proposals for stricter controls on both online and land-based gambling activities by the central bank and legislature.

        Requirements

        Software Certification and Technical Standards

        • All gaming software and systems used by gambling operators must be certified by recognized independent testing laboratories to ensure fairness, randomness, and compliance with regulatory standards set by PAGCOR or the relevant authority.
        • Operators are required to implement robust game integrity controls, including regular software audits and technical inspections to detect manipulation or unauthorized alterations.
        • Gaming platforms must support secure, encrypted transactions and adhere to established cybersecurity protocols to protect the integrity of games and player data.
        • Technical systems must provide comprehensive logging and monitoring capabilities, allowing regulators to audit all gaming transactions and activities in real time.
        • Operators must maintain a documented change management process for all software updates or modifications, subject to regulatory approval or notification.

        Data Protection, Privacy Measures, and Server Location

        • Operators must comply with the Philippine Data Privacy Act, ensuring that all personal and financial data of players is securely collected, processed, and stored.
        • Data encryption is mandatory for all sensitive information, both in transit and at rest, including player identification, payment details, and gaming activity records.
        • Access to player data must be strictly controlled, with audit trails maintained for all access and modifications.
        • Operators are required to implement robust data breach detection and incident response procedures, including prompt notification to authorities and affected individuals in the event of a breach.
        • Server location requirements may stipulate that core gaming servers and data storage facilities be located within the Philippines or in jurisdictions approved by the regulator, subject to inspection and compliance checks.

        Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

        • Operators must implement comprehensive AML programs in line with the Anti-Money Laundering Act and its amendments, including customer due diligence, transaction monitoring, and suspicious activity reporting.
        • KYC procedures require verification of player identity, age, and address before allowing participation in gambling activities. This typically involves collecting government-issued identification and proof of residence.
        • Enhanced due diligence is mandatory for high-risk or high-value transactions, including additional verification steps and ongoing monitoring of player activity.
        • Operators must report any single or aggregated transactions that meet or exceed the regulatory threshold (e.g., PHP 3 million) to the Anti-Money Laundering Council within 24 hours.
        • Staff must be trained regularly on AML and KYC obligations, and systems must support automated flagging of suspicious transactions.

        Financial Reporting, Auditing Standards, and Record-Keeping

        • Operators are required to maintain accurate, up-to-date financial records and submit periodic financial statements to the regulator, prepared in accordance with Philippine Financial Reporting Standards.
        • Annual independent audits of financial and gaming systems are mandatory, with audit reports submitted to PAGCOR or the relevant authority for review.
        • Operators must retain all gaming, financial, and customer records for a minimum period (typically five years), ensuring that records are readily accessible for regulatory inspection or investigation.
        • Real-time transaction data and financial flows must be logged and made available to regulators upon request, supporting transparency and traceability.

        Technical Implementation Requirements for Responsible Gambling Tools

        • Gaming platforms must include technical features that allow players to set deposit, loss, and time limits, and these tools must be easily accessible and configurable by players at any time.
        • Self-exclusion mechanisms must be implemented, enabling players to voluntarily restrict their access to gambling services for defined periods or permanently.
        • Operators are required to display responsible gambling messages and provide links to support resources throughout the gaming interface.
        • Technical systems must prevent self-excluded or underage players from participating in any gambling activities, with automated checks at registration and login.
        • Operators must monitor player behavior for signs of problem gambling and implement automated alerts or interventions as required by regulatory guidelines.

        Sources

        Primary Regulatory Authorities

        Legislation Resources

        Anti-Money Laundering and Financial Regulation

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          Important Information Notice

          Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.

          Last updated: 18 April 2025