Lance Gokongwei
Lance Gokongwei, president and CEO of JG Summit, has made a strategic investment in the Philippine online gaming sector by acquiring shares in PhilWeb Corporation valued at 2 billion pesos ($33 million). The deal positions Gokongwei to capitalize on the country’s rapidly expanding digital gaming market. PhilWeb, operating 670 onsite eGames venues nationwide, has emerged as a significant player in an industry that generated 201 billion pesos last year, representing 51% of the Philippines’ total gambling revenue. Notably, this figure marks a sixfold increase from the 32.2 billion pesos recorded in 2019.
The transaction, announced June 23, 2026, involves Gokongwei purchasing 159.5 million common shares and 93.8 million preferred shares for 2.026 billion pesos (£26.21 million). The subscription price of 8 pesos per share represents a 40 percent discount to PhilWeb’s last traded share price.
The acquisition grants Gokongwei an initial 10 percent stake in the Manila-based company. If all redeemable preferred shares convert, his ownership could reach 15 percent. This positions him as PhilWeb’s second-largest shareholder, trailing only chairman Crisanto Roy Alcid.
Alcid led a management buyout that secured 57.8 percent of the company from property tycoon Gregorio Araneta III, brother-in-law of Philippine President Ferdinand Marcos Jr.. The buyout occurred last year, preceding Gokongwei’s entry.
The investment requires PhilWeb to increase its authorized capital stock from 2.6 billion pesos to 3.6 billion pesos. The capital expansion needs corporate, stockholder, and regulatory approvals before closing.
PhilWeb intends to deploy the proceeds to strengthen its balance sheet and integrate advanced data and AI capabilities across its technology infrastructure. The funds support the company’s transformation into an AI-enabled platform serving regulated digital entertainment and gaming operations.
The global online entertainment market provides substantial growth prospects, projected to expand from $124.41 billion in 2026 to $340.83 billion by 2034, exhibiting a compound annual growth rate of 13.43 percent. Gaming accounts for 43.88 percent of this market.
Domestically, e-gaming platforms have evidently surpassed traditional casino operations, securing 53 percent of total gaming revenues in the Philippines during the first half of this year. National gross gaming revenue faces projected growth of 17 percent, primarily driven by the e-gaming sector.
PhilWeb’s transformation from e-Games operator to B2B technology provider aligns with this shift. The company reported net income of 13.9 million pesos in the first quarter of 2026, reversing a 25.5 million peso loss from the same period in 2025. After receiving B2B accreditation under PAGCOR’s framework, PhilWeb secured partnerships with major operators including Okada Manila, Hann Casino Resort, Newport World Resorts, and NUSTAR.
The NUSTAR connection holds particular significance. NUSTAR Online became PhilWeb’s first client for its new game content distribution and aggregation business. Gokongwei’s JG Summit Holdings owns NUSTAR Resort Cebu. Additionally, PhilWeb entered a strategic agreement with FBM Philippines, targeting integration across 30,000 machines in more than 500 locations.
PAGCOR, the government-owned corporation regulating all gambling activities and operating the Casino Filipino chain, serves as the third-largest revenue contributor to the Philippine economy. The regulatory body has initiated a transition toward becoming a purely regulatory entity, moving to privatize its casino operations and ensure a level playing field for industry participants.
The Philippine gaming market reached PHP 396.14 billion in gross gaming revenue during 2025, marking a 6.4 percent increase. E-Games and online gaming accounted for 50.77 percent of total industry GGR, overtaking licensed casinos as the largest revenue contributor. Revenue from this segment rose 30 percent to PHP 201.12 billion. Simultaneously, licensed casino revenue declined 9.6 percent to PHP 182.50 billion, while PAGCOR-operated casinos fell 21 percent to PHP 12.52 billion.
Consequently, PAGCOR reduced gaming license fees for land-based operators from 35 percent to 30 percent, and to 25 percent for resort operators offering iGaming, effective January 1, 2025. Tax on Gross Gaming Revenue dropped from 55 percent to 35 percent.
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