ASIA-PACIFIC REGION: An Introduction to Gaming & Gambling

The Asia-Pacific (APAC) region stands as the world’s most dynamic and diverse market for regulated gambling and commercial gaming, with economic and political developments shaping a rapidly evolving legal landscape. Post-pandemic recovery has reinvigorated land-based integrated resorts (IRs), especially in Macau, the Philippines and Singapore. Furthermore, digital adoption is accelerating, driven by mobile-first habits, 5G infrastructure and increasing regulatory openness to online gaming, though legal frameworks remain fragmented. Gross gaming revenue (GGR) in APAC is expected to exceed pre-pandemic levels by the end of 2025, with online and mobile gaming projected to grow at double-digit rates through 2028.

Legislative and regulatory reform continues at varying speeds: Macau’s 2022 Gaming Law revision prioritised non-gaming investment and tighter compliance, while the Philippines is moving towards structural reform. Thailand’s legalisation efforts reached a high point in July 2025 but stalled due to political uncertainty, and Japan’s cautious rollout of IRs faces escalating costs. Singapore remains a model of regulatory stability, recently enhancing AML compliance and digital exclusion systems. Despite these advances, the sector faces ongoing challenges.

Policy volatility – particularly in India and Thailand – coupled with AML scrutiny, ESG imperatives and supply chain constraints imposes significant compliance and reputational risks. Operators must also contend with increasing social expectations and the need for demonstrable community contributions. Nevertheless, strategic opportunities abound. Thailand’s potential market liberalisation, China’s outbound tourism rebound, and structured digital sandboxes in India and the Philippines offer fertile ground for innovation and growth. Stakeholders who align with responsible gaming priorities, anticipate legislative windows and invest in digital transformation will be well positioned to capitalise on APAC’s scale and diversity.

Market Size and Growth Trajectory

Before the pandemic, land-based casinos across APAC generated over USD80 billion in GGR, accounting for more than half of the global total. Macau alone produced USD36 billion in 2019 – six times more than the Las Vegas Strip – while Australia, the Philippines and Singapore added several billion each. Online gaming and sports betting added another estimated USD15–20 billion, with mobile-first markets like India and Thailand recording explosive growth. A significant share of overall revenue is believed to stem from unregulated or grey-market activity.

COVID-19 led to a dramatic 70% drop in GGR across the region in 2020. However, recovery has been swift. Macau saw gaming revenue quadruple year-on-year in early 2023, and Manila’s Entertainment City exceeded pre-pandemic highs by mid-2022. By early 2024, the region appeared on track to surpass USD90 billion in land-based GGR, assuming China’s outbound tourism normalises and Japan’s IR development stays on course.

Meanwhile, digital growth continues to accelerate. With smartphone penetration above 80%, analysts forecast an 11–13% annual increase in online gambling through 2028, driven by 5G, rising incomes and regulatory experimentation in major emerging markets.

Regulatory Frameworks: A Patchwork of Opportunity and Constraint, Rooted in Divergent Philosophies

APAC regulators fall into four categories:

• fully regulated jurisdictions (eg, Macau, Singapore, the Philippines, Australia);
• emerging or transitional regimes (eg, Japan, Vietnam, South Korea);
• prohibitive but tolerant of limited exceptions (eg, Thailand’s current stance, certain Indian states); and
• strict prohibition (eg, mainland China outside of state-run lotteries, Indonesia, Brunei).

Policy direction often hinges on perceived tourism upside, potential tax yields, public health and national security concerns – especially relating to offshore online gambling hubs.

Regulatory Update

Macau continues its post-concession reforms under the 2022 revised Gaming Law, retaining the concession model but imposing stricter rules on local ownership, profit-sharing, non-gaming reinvestment and junket operations. Concessionaires must fulfil non-gaming investment commitments through 2032, with regulators emphasising measurable social contributions. The number of licensed junkets has fallen to 36, and the 35% gaming tax – plus 5% in levies – keeps Macau among the highest-tax jurisdictions globally.

Singapore maintains its reputation as the region’s regulatory benchmark. The Gambling Control Act 2022 consolidated oversight under the Gambling Regulatory Authority, while 2025 saw the launch of a unified digital exclusion system and new AML guidelines. Marina Bay Sands and Resorts World Sentosa hold ten-year licence extensions tied to USD6.6 billion in reinvestments.

Australia has pivoted towards responsible gaming, mandating cashless play in New South Wales and expanding AML enforcement. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has issued record fines, while state-level regulation persists. Online casinos remain federally banned, though sports betting and poker continue under licence.

New Zealand has made a significant policy shift. Historically restrictive under the 2003 Gambling Act, the government introduced the Online Casino Gambling Bill in June 2025, formally opening the market to licensed online casinos for the first time. Up to 15 licences will be issued starting in 2026, subject to strict eligibility, AML and harm-prevention criteria. This marks a move from prohibition to regulation, aiming to curb offshore gambling and retain tax revenue while maintaining robust consumer protections.

The Philippines is overhauling its gaming governance. Philippine Amusement and Gaming Corporation (PAGCOR) still acts as both operator and regulator, but reforms continue. The 2022 Offshore Gaming Manual raised licensing and AML thresholds, while a bill to spin off regulatory duties to a new Gaming Commission remains under review. The freeze on new Philippine Offshore Gaming Operator (POGO) licences persists, and Clark Freeport is poised to overtake Manila in IR development.

Japan’s IR rollout remains limited. Only Osaka’s project – backed by MGM and Orix – has Cabinet approval, with a 2030 target launch. It faces cost overruns, especially on Yumeshima Island, but is still central to national tourism strategy. Access for locals remains tightly restricted via ID-based limits. Nagasaki’s bid has stalled due to financing gaps.

Thailand inches closer to legalisation. A July 2025 report supports a five-zone IR model with a 17% GGR tax and centralised oversight. However, a draft bill was withdrawn amid political instability, but momentum remains, and Thailand could become a major regional competitor.

South Korea’s Inspire Resort experienced financial turmoil in 2025, and foreign-only access remains the norm. Kangwon Land is still the only casino open to locals. Legislative proposals for limited domestic access continue to face opposition, while IR development around Incheon faces delays and financing hurdles.

Vietnam’s pilot scheme allowing locals to enter select casinos is viewed positively and may expand. The regulatory focus now centres on IR development and AML improvements.

Cambodia has transitioned away from online gaming following its 2020 ban, refocusing on land-based operations and aligning with regional compliance standards.

India’s complex market is evolving. Land-based casinos are limited to a few states, while online skill games remain largely permitted. The government began approving self-regulatory bodies in 2025 under new rules expected to reshape fantasy and real-money gaming. Goods and services tax (GST) litigation on gaming deposits continues to create uncertainty.

Major Players and Competitive Dynamics

APAC’s IR landscape is led by major players such as Galaxy, Sands China, Melco, Wynn, MGM China and SJM in Macau, with over 30 casino hotels and 70,000 slot machines.

In the Philippines, Entertainment City is anchored by Bloomberry’s Solaire, Melco’s City of Dreams, Genting’s Newport World and Universal’s Okada Manila. Singapore’s MBS and RWS attract nearly 40 million visitors annually, reinforcing the IR model’s impact on tourism. The USD10 billion Osaka IR, led by MGM/Orix and Panasonic Arena, will include 2,500 rooms and a 15,000-seat venue. Key sportsbooks include Tabcorp, Ladbrokes and bet365. While many Asian-facing online casinos remain licensed offshore, regulatory and banking pressures are accelerating the shift towards regulated business-to-consumer (B2C) operators.

Fintech and compliance vendors are vital to this evolution. Platforms like AlipayHK, GrabPay and PayMaya support seamless payments, while firms such as Jumio and Dow Jones Risk & Compliance offer enhanced KYC and AML solutions, increasingly in demand as scrutiny intensifies.

Key Trends Shaping the Sector

APAC IRs are increasingly shifting towards broader entertainment ecosystems, blending gaming with arenas, malls and family attractions to reduce reliance on VIP revenue and meet non-gaming diversification goals. Digital acceleration plays a central role, with 5G enabling esports, cloud gaming and augmented reality (AR) betting. Telecom providers preload wagering apps, easing user migration from casual play to real-money gaming. Esports infrastructure is being integrated into resorts, while monetisation through skins betting and fantasy leagues grows amid evolving regulation.

Cashless play is expanding post-pandemic, with Macau deploying facial-recognition ATMs and Australia testing carded systems. Some operators are piloting digital wallets linked to stablecoins, offering traceability with pending regulatory clarity. ESG and responsible gaming have become licensing benchmarks, with exclusion registers, addiction funding and sustainability metrics increasingly required.

Yet challenges persist. Operators face regulatory unpredictability, heightened AML scrutiny and rising development costs due to post-pandemic supply constraints. Labour shortages in tech and compliance add pressure. Public scepticism – fuelled by scandals and political backlash – requires operators to build trust through transparency, third-party audits and visible community benefits.

Opportunities on the Horizon

Thailand remains a major opportunity in the region. With 72 million residents and pre-pandemic tourism nearing 40 million arrivals annually, it offers unmatched scale among Southeast Asian markets.

Global operators are eyeing over USD30 billion in IR investment over the next decade – conditional on competitive tax structures and clear rules on local participation.

Meanwhile, the gradual easing of China’s travel restrictions is expected to restore Macau’s core visitation base and support recovery in Korea’s foreigner-only casinos and Manila’s VIP sector.

On the digital front, licensing initiatives like the Philippines’ Philippine Inland Gaming Operator (PIGO) framework, and India and East Timor’s forthcoming online gaming rules offer structured, tax-compliant entry points to vast mobile-first populations.

At the cross-border level, regional firms are increasingly partnering with Western operators to enhance design and compliance, while Asian capital continues to flow into US and European gaming platforms seeking APAC expansion.

Strategic Considerations for Industry Stakeholders

Operators in APAC must adopt capital strategies that reflect not only IR development but also rising regulatory demands for non-gaming diversification, ESG-linked financing and long-term tech investment. Success increasingly hinges on aligning market entry with legislative windows.

For investors and lenders, APAC continues to offer attractive returns – often outpacing US regional markets – though with higher risk tied to regulatory shifts and geopolitical dynamics. Mitigation tools include minority-stake structures with local partners, currency hedging and contractual safeguards like force majeure clauses.

Governments and regulators must balance tax policy with investment feasibility. Regional trends show that GGR tax rates above 30% may deter major resort spending unless offset by exclusivity guarantees or long-term licensing. Transparent bidding and strong regulatory institutions remain key to building investor confidence.

As digital infrastructure advances, tech providers offering integrated solutions—biometric onboarding, e-wallets and real-time AML tools – are gaining prominence. Alignment with national digital-ID schemes further enhances interoperability and trust, making such vendors vital players in the region’s evolving gaming compliance ecosystem.

Conclusion

The APAC gaming and gambling sector stands at an inflection point. Post-pandemic recovery, nascent legalisation initiatives and technological convergence underpin a market poised to surpass USD110 billion in land-based GGR and USD30 billion in regulated online revenue within the next five years. Yet this trajectory is neither linear nor guaranteed. Policymakers wrestle with social safeguards, investors weigh geopolitical headwinds and operators recalibrate business models towards sustainability and diversified entertainment offerings. Jurisdictions such as the Philippines, Japan and potentially Thailand are expected to shape the next chapter, offering fertile ground for innovation and growth. Stakeholders who navigate regulatory intricacies, embrace responsible gaming and align with evolving consumer preferences will unlock the full potential of APAC’s unparalleled demographic and economic scale.