Far East iGaming Regulation: Challenges for Operators in the Philippines and Beyond

Operators in the Far East’s iGaming sector face a dynamic and complex regulatory environment, particularly as new proposals in the Philippines could limit advertising and South Asian markets continue to shift policy positions. While opportunities grow, compliance and operations divisions have become central to navigating this evolving landscape, as revealed by Japneet Sethi, Chief Growth Officer – South Asia at iGaming NDA, ahead of his panel appearance at the SBC Summit in Lisbon.

Heightened Regulatory Scrutiny in Far East iGaming

Recent years have seen a marked increase in regulatory oversight across Far East iGaming markets. According to Japneet Sethi, while geopolitical conflict in the Middle East has not directly affected the sector operationally, increased governmental scrutiny has had a significant impact, especially in South Asia. Many countries in the region have moved to regulate or outright ban online gambling, elevating the role of compliance and operations within operators. The expansion of COO and CCO roles is a direct response to shifting regulatory policies and greater attention from authorities.

"Operations and compliance became the most important departments for operators," said Japneet Sethi, reflecting on regulatory shifts in South Asia.

This context underscores the need for thorough due diligence on both financial structures and political environments before entering or expanding in these markets. Sethi emphasises rational resource allocation and careful planning to mitigate rising costs linked to instability and heightened supervision.

The Philippines: Potential Impact of Proposed Advertising Ban

The Philippines, long seen as a dynamic hub for online gambling, now faces uncertainty with the introduction of a bill proposing a full ban on iGaming advertising. As Sethi observes, volatility is inherent in most iGaming jurisdictions due to the political climate. At present, the legislation remains at the proposal stage, requiring passage through both chambers of the Philippine Congress and presidential approval to become law. From Sethi’s discussions with regional experts, a total ban remains unlikely, yet the mere risk signals the importance of contingency planning for operators. Even a small probability of legislative change can have outsized implications, particularly where “most of the frequently used marketing channels” could be lost.

If enacted, such a ban would severely impact operator outreach and visibility, fundamentally altering customer acquisition strategies and potentially increasing reliance on alternative marketing methods.

Land-Based Casinos Turn to Online Expansion in the Philippines

Some land-based casino operators in the Philippines have sought growth by entering the regulated online casino market. Sethi characterises this not as a sign of sector struggle, but as a market correction influenced by economic and regulatory pressures. Integrated online and offline offerings enable operators to provide continuous player engagement and leverage novel loyalty programmes that span both environments.

Despite challenges in the first two quarters of the year, the expectation is for the market to stabilise as operators and regulators adjust to new realities. Sethi’s perspective suggests online expansion is a logical progression for brick-and-mortar brands operating under the current legislative framework.

Macau Market Correction and Response to Major Events

Macau, a key gaming jurisdiction, experienced a drop in casino gross gaming revenue (GGR) during the FIFA World Cup, attributed to player focus on sports betting. Sethi notes momentum returned near the event’s end, and predicts recovery beginning from August and September. Under current government policy, additional market share is not expected to be allocated to new entrants—any freed-up share is distributed among existing licensees, removing the potential for new operator entry in the near term.

“New entrants are not possible because under the current government laws, any freed-up market share would be equally distributed amongst the current internal players,” Sethi stated regarding Macau’s regulatory limits.

Sethi describes these conditions as a “stress-test” rather than a sustained challenge, implying resilience among established stakeholders.

The Growing Importance of Regulatory Dialogue at Industry Events

Panels like those hosted at the SBC Summit in Lisbon are increasingly critical as they gather voices from both iGaming and non-iGaming sectors worldwide. Sethi sees such forums as essential for sharing perspectives and shaping practical solutions that respond to emerging challenges. The event provides an opportunity for regulatory affairs professionals, operators, and investors to discuss evolving Far East iGaming regulation and to gain insights into the latest developments in regulated markets. For stakeholders navigating these jurisdictions, gaining perspective from market leaders and compliance teams is key to building resilient strategies. Event-driven dialogue, as exemplified by the SBC Summit, contributes to industry-wide understanding and adaptation.

Adapting to Change: Compliance as a Strategic Imperative

For operators in the Far East, ongoing adaptation is central. Regulatory changes—from proposed advertising bans in the Philippines, to new restrictions and heightened scrutiny across South Asia and Macau—require investment in compliance infrastructure and strategic flexibility. Conducting political and financial due diligence before making commitments in these rapidly shifting environments is essential to ensure sustainability and mitigate risk. In this context, the rise of robust operations and compliance roles reflects the sector’s evolving priorities, with a forward focus on stability and long-term growth.