Online gambling is widespread in the Philippines and has significantly changed both the economy and daily life in the country.
While initially touted as a lucrative industry promising jobs and government revenue, the rapid expansion of online gambling, especially through platforms known as Philippine Offshore Gaming Operators (POGOs)—has brought with it a host of negative consequences that led to its demise.
These range from deepening individual and community poverty to fostering a culture that normalizes risk, addiction, and even crime.
The rise of online gambling in the Philippines
The Philippines actively pursued the online gambling industry, legalizing and promoting virtual casino operations to attract foreign investment and generate revenue.
For starters here are some stats that show growth in gambling in the Philippines:
- Over 30 million Filipinos participate in gambling activities, and the industry is projected to generate up to ₱250 billion (about $4.5 billion) annually by 2025.
- In 2024, the Philippines’ gross gaming revenue reached a record P410 billion ($7.16 billion), with the online (iGaming) sector posting a 165% year-on-year increase to PHP154.51 billion ($2.6 billion).
- Online gambling accounted for 56% of all gaming revenue in the first quarter of 2025, generating PHP14.32 billion, while land-based casinos contributed 32.6%.
- The Philippine Amusement and Gaming Corporation (PAGCOR) expects total gambling revenues to grow by as much as 17% in 2025, driven largely by the booming e-gaming sector.
- Online gaming has become the largest contributor to gaming taxes in the Philippines since early 2024, with electronic games and e-bingo making up over half of PAGCOR’s total gaming revenues.
Billboards advertising online gaming services became ubiquitous in Manila, and physical casinos saw dwindling attendance as most gambling activity shifted online.
At its peak, the industry contributed up to US$2.8 billion annually to the economy. However, the estimated social and economic costs, including crime and addiction, were nearly double at US$4.5 billion.
Accessibility and cultural normalization
Online gambling’s appeal lies in its accessibility. Anyone with a smartphone and internet connection can participate, with minimal barriers to entry.
You or someone you know — a family member, a fellow worker, or a neighbor — could be a regular player in online gambling. And because it is so convenenient to play, even jeepney drivers can try their luck while on the job.
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Aggressive advertising—often featuring celebrities and sports teams—has made gambling seem glamorous and attainable, even to children and minors.
Many gambling ads are not age-restricted, allowing young people to see them and making betting seem normal from an early age. Even when ads target only adults, younger people are still exposed to gambling through their families, communities, and media.
Addiction and the Filipino family
The psychological toll of gambling addiction is severe. Stories like that of “Mark,” who lost over P20 million, highlight how addiction can lead to financial ruin, fractured families, and mental health crises.
Mark’s addiction led to marriage breakdown, debt, and even suicide attempts before he sought rehabilitation. Such cases are not isolated. Helplines for gambling addicts receive frequent calls, including from parents worried about their children’s exposure to online gambling.
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Poverty and problem gambling: A vicious cycle
Research consistently shows a strong link between poverty and problem gambling. Those in lower-income brackets spend a higher percentage of their income on gambling, increasing their risk of financial harm. In the Philippines, online gambling is especially insidious among the poor, who may see it as a quick way out of hardship. However, the reality is starkly different.
A study found that while a tiny fraction of gamblers improved their financial situation through gambling, far more were pushed deeper into poverty. Of a sample group, 9.75% became poorer due to gambling, while only 1% managed to escape poverty through winnings. The hope of instant wealth, fueled by pervasive advertising and cultural acceptance, keeps many trapped in a cycle of loss.
Social and community costs
The societal costs of online gambling go beyond individual losses. Communities experience increased crime, strained social values, and a burdened justice system.
The proliferation of illegal gambling sites and scams has led to money laundering, human trafficking, and other forms of organized crime. These activities undermine trust in institutions and erode the social fabric.
Youth vulnerability and the role of technology
Filipino youth are particularly vulnerable. Poorly regulated platforms, social media, and digital payment hubs make it easy for minors to access gambling sites.
Lawmakers have begun to address these issues, but enforcement remains a challenge. The normalization of gambling among youth threatens to perpetuate cycles of addiction and poverty into future generations.
The iIllusion of economic benefit
While online gambling was initially justified as a source of jobs and government revenue, the negative externalities have proven far greater.
Philippine economic managers concluded that the costs—lost investment, tourism, and social harm—outweighed the economic benefits. The recent ban on POGOs reflects a recognition that the industry’s harms cannot be justified by its financial contributions.
How gambling culture worsens Philippine poverty
Online gambling culture in the Philippines boosts poverty in several ways:
False hope of wealth
The promise of quick riches entices the poor to gamble more of their limited resources, often leading to greater financial distress when losses mount.
For perspective, chances of winning the Philippine online 6/58 Ultra Lotto jackpot are 1 in 40,475,358—meaning you are far more likely to be struck by lightning or become a professional athlete than to hit the jackpot.
Addiction and escalating losses
Gambling addiction leads to escalating bets and debts, with individuals often borrowing from banks, loan sharks, or friends, deepening their financial woes.
Intergenerational impact
Children exposed to gambling at a young age are more likely to develop addictive behaviors, perpetuating cycles of poverty across generations.
Social disintegration
Family breakdowns, mental health crises, and crime associated with gambling further erode the social and economic stability of communities.
Policy responses and the road ahead
The Philippine government’s decision to ban POGOs and crack down on online gambling reflects a shift in priorities, recognizing the long-term harm over short-term gains.
However, the persistence of illegal sites and the adaptability of operators—using cryptocurrencies and AI to evade detection—mean that enforcement remains a significant challenge.
Conclusion
Online gambling has profoundly impacted Filipino society, offering the illusion of prosperity while deepening poverty and social harm. Its culture, fueled by aggressive marketing and technological accessibility, preys on the vulnerable, especially the poor and the youth.
As the Philippines moves to regulate and restrict online gambling, addressing the underlying issues of poverty, addiction, and social disintegration will be crucial to breaking the cycle and fostering a healthier, more equitable society.