The Philippine Amusement and Gaming Corporation (PAGCOR) reported a significant 26.6% decline in revenues for the first half of 2026, attributing this downturn to stringent regulations and a decrease in gaming operations affecting the nation’s gambling sector. Total revenues for January to June reached PHP43.32 billion ($705.7 million), down from PHP59.05 billion ($961.9 million) in the same period last year.
PAGCOR's gaming business remained the leading source of income, bringing in PHP38.92 billion ($634 million), which marks a 27.1% reduction compared to the prior year. Alejandro Tengco, PAGCOR’s Chairman and CEO, pointed out that geopolitical tensions in the Middle East contributed significantly to lower consumer spending in the first quarter, impacting gaming demand.
In detail, revenue from electronic gaming saw an alarming 41.9% drop year-on-year, falling to PHP18.6 billion ($303 million). Licensed casinos experienced a 3.9% decline, whereas PAGCOR-operated casinos faced an 8.7% decrease.
The net operational income contracted by 35%, settling at PHP31.75 billion ($517.2 million), while net profit plummeted by 85.3% to PHP1.58 billion ($25.7 million). Despite these disappointing figures, PAGCOR managed to remit PHP30.16 billion ($491.3 million) to the national government, which includes mandatory taxes and funding for public programs.
Tengco acknowledged that, although there were improvements in market conditions in the second quarter, uncertainties persist, especially with the increase in global fuel prices. He emphasized the agency’s commitment to enhance industry performance through effective regulation and collaboration with stakeholders, ensuring that the gaming sector continues to generate substantial revenue for national development.
The outlook for the Philippine gaming industry remains challenging, as S&P Global anticipates a 7% decline in gross gaming revenue (GGR) for 2026, marking a shift from the 6% growth seen in 2025. This slowdown has been linked to tighter online gaming regulations, including stricter oversight on e-wallet connections to gambling platforms.
