The Philippine Amusement and Gaming Corporation (PAGCOR) has announced a significant decline in revenues for the first half of 2026, reporting a drop of 26.6% compared to the same period last year. The total revenue for January to June reached PHP43.32 billion (approximately US$705.7 million), down from PHP59.05 billion (about US$961.9 million) in 2025. PAGCOR’s gaming business remained the primary source of income, contributing PHP38.92 billion (roughly US$634 million), marking a 27.1% decrease year-on-year.
PAGCOR Chairman and CEO Alejandro Tengco attributed this downturn largely to geopolitical tensions in the Middle East, which he stated adversely affected consumer spending and demand within the gaming sector during the initial quarter. Notably, revenue from electronic gaming saw a sharp decline of 41.9%, totaling PHP18.6 billion (around US$303 million).
In addition to electronic gaming, revenues from licensed casinos decreased by 3.9%, while PAGCOR-operated casinos reported a more significant 8.7% drop. As a result of these declines, PAGCOR's net operational income fell by 35%, amounting to PHP31.75 billion (approximately US$517.2 million), and net profit plummeted by 85.3% to PHP1.58 billion (about US$25.7 million).
Despite the significant drop in earnings, PAGCOR managed to contribute PHP30.16 billion (around US$491.3 million) to the national government through a combination of mandatory remittances, taxes, and funding for public initiatives.
Tengco commentated, "While market conditions improved in the second quarter, uncertainties remain, particularly with the recent increase in global fuel prices. Nevertheless, we remain focused on strengthening industry performance through sound regulation and close collaboration with our stakeholders to ensure that the gaming sector continues to generate meaningful revenues for nation-building."
In recent reports, S&P Global projected a 7% decline in the Philippine gaming industry’s gross gaming revenue (GGR) for 2026, reversing the 6% growth seen in 2025. This expected slowdown has been linked to stricter regulations concerning online gaming, especially tighter controls related to e-wallet connections to gambling platforms.
