Tightened rules and stricter oversight of the gaming sector may have hampered efforts to recover revenues lost in previous quarters, but global credit rating agency S&P Global Ratings said a more supportive visa policy and the rebound in online gambling could help gaming operators bounce back in terms of earnings.

“A supportive visa policy and a recovery in online gambling could drive a return to growth for the Philippines’ gross gaming revenue (GGR),” S&P credit analyst Flora Chang wrote in a July 1 sector report obtained by Manila Bulletin.

This comes on the back of the industry’s shrinking earnings in the first quarter of 2026. State-run regulator Philippine Amusement and Gaming Corp. (Pagcor) had reported that the country’s GGR fell 15.9 percent in the first quarter of the year, driven by the sharp contraction in electronic gaming as inflationary spillovers from conflicts in the Middle East eroded local consumer discretionary spending.

Pagcor said the decline was largely driven by the electronic gaming sector, which includes e-games, e-bingo, bingo, and poker, all of which sharply declined by 22.4 percent from the same period in 2025.

Recall that the surge in the online and e-gaming sectors’ collections drove nearly ₱400 billion in revenue in 2025.

Licensed casinos remained the industry’s biggest revenue source, generating ₱44.5 billion, or more than half of total GGR, while the e-gaming segment contributed ₱39.9 billion, or 45.6 percent of total.

Meanwhile, the Philippines has moved to tweak its visa policy for foreign passport holders.

Last week, the Manila Economic and Cultural Office (MECO) said the Philippines extended visa-free entry for Taiwanese passport holders until June 30, 2027, allowing 14-day stays without a visa on a reciprocal basis.

It may also be recalled that the Department of Foreign Affairs (DFA) ruled that Chinese nationals may enter the Philippines without securing a visa for two weeks. This rule, which took effect in January, is valid for a year and will be reviewed before it expires.

Despite the disappointing first-quarter figure, Pagcor Chairman and Chief Executive Officer (CEO) Alejandro H. Tengco sounded upbeat, noting that the industry’s performance will be buoyed by a recovery in consumer confidence and discretionary spending—both of which were hurt by the multibillion-peso flood-control corruption scandal and the lingering global oil shock.

When the United States (US) and Iran entered the four-month-old war, oil shipments through the Strait of Hormuz were halted, leading to global supply chain disruptions. This prompted President Ferdinand R. Marcos Jr. to declare the nation under a state of energy emergency, complementing the announcement with energy-related measures.

“Rising energy costs may lead to reduced operating hours and lower cash flows for casinos in markets implementing energy-saving mandates, such as the Philippines and South Korea,” Chang noted.

Chang further stressed that the government’s resolve to review and revise regulations governing online gambling operations “could alter player behavior or increase customer acquisition costs, potentially hindering revenue growth and profitability.”

Pagcor now requires local business-to-business (B2B) service providers to comply with accreditation standards, warning that failure to comply could result in the suspension of their gaming systems and digital platforms.

Last month, Pagcor tightened its anti-money laundering (AML) controls in the e-gaming industry by expanding the reporting network to include banks and e-wallets.

Under the new rules, Bangko Sentral ng Pilipinas (BSP)-supervised financial institutions accredited as support service providers, including payment gateways, will be governed by Anti-Money Laundering Council (AMLC) rules relevant to their specific business activities.

Additionally, casino operators were required to integrate specific corruption-linked red flags into their compliance systems. This move forms part of Pagcor’s intensified clampdown on dirty money moving through the country’s gaming hubs.