Thailand’s plan to legalize casinos poses a major threat to the local gaming industry, potentially displacing it as Asia’s second-largest gambling hub, the Philippine Amusement and Gaming Corp. (Pagcor) said.

Alejandro Tengco, Pagcor chairman and chief executive officer, told reporters on Wednesday, Feb. 26, that while the state-run agency projects record-high revenues this year, Thailand's potential casino legalization could shift the regional landscape.

Tengco reported that the country’s gross gaming revenue (GGR) hit an all-time high of ₱410.5 billion last year, and he expects the local gaming sector to post another record for 2025.

Citing the recovery in integrated resorts (IRs) and growing electronic games (e-games), Tengco said total revenues for 2025 could clock in at ₱450 billion to ₱480 billion—a nearly 17 percent or up to ₱70 billion rise from 2024 figures.

Last year’s GRR placed the Philippines second to Macau, China’s special administrative region, as the gambling capital of Asia—but possibly not for long.

Thailand’s tourism industry surged after the pandemic, while the Philippines has yet to return to its pre-pandemic performance. Thailand’s booming tourism sector gives it a competitive edge in the region, drawing both gamblers and investors.

According to reports, Citigroup projected last year that once Thailand’s gambling industry is fully developed, it can easily rank as the third-biggest global market after Macau and Las Vegas.

“It’s a big threat,” Tengco said, a statement intensified by the kingdom’s most recent development in its casino legalization. Tengco likewise noted that Japan plans to open a casino in Osaka, another major tourist destination.

Aside from the risk of lagging behind Thailand, players might also experience a rapid shift in the local gaming landscape, from land-based to online.

Replacing traditional casinos

Pagcor’s contribution to the 2024 GGR was relatively modest, accounting for just four percent of the total. It is projected to expand slightly to five percent, while the largest contributors in 2024—IRs and e-games—are expected to maintain their bulky shares.

Tengco believes that land-based casinos could soon fade as gamblers opt for e-games or online casinos more often.

He said both modes might reach equal footing “very soon,” or over the next two to three years, in particular.

“E-games will continue to attract unregistered [players] to register, as the local rates are now comparable to the license fees of online gaming jurisdictions around the world,” Tengco noted.

He added that Pagcor will “continue to accept” registrations from unregistered players, stressing that this will drive the industry’s expansion.

Moving forward, Tengco said Pagcor must restructure and move forward with plans to sell its numerous state-owned Casino Filipino outlets to focus on its role as an industry regulator.

He explained that decoupling—separating Pagcor’s roles as both a casino operator and regulator—will demonstrate its fairness and reinforce its claim that “there is no conflict of interest.”

That said, the Pagcor chief hinted that the privatization of government assets could start in 2026.