The Philippine Amusement and Gaming Corporation (PAGCOR) has disclosed a significant revenue decline of 26.6% in the first half of 2026 compared to the same period last year, attributing this downturn to stricter regulations and a decrease in gaming operations within the country’s gambling sector. Total revenues for January to June hit PHP43.32 billion (approximately US$705.7 million), a sharp drop from PHP59.05 billion (US$961.9 million) during the first half of 2025. PAGCOR's gaming business continued to be the largest revenue source, contributing PHP38.92 billion (US$634 million), which represents a 27.1% decline year-on-year.
Alejandro Tengco, the CEO and Chairman of PAGCOR, noted that geopolitical tensions in the Middle East have had a direct impact on consumer spending and gaming demand, particularly in the first quarter of the year. The corporation observed a stark 41.9% plummet in revenue from electronic gaming, totaling PHP18.6 billion (US$303 million). Revenue from licensed casinos fell by 3.9%, while PAGCOR-operated casinos experienced an 8.7% decrease in earnings.
PAGCOR's net operational income suffered a substantial 35% drop, totaling PHP31.75 billion (US$517.2 million), with net profit down dramatically by 85.3% to PHP1.58 billion (US$25.7 million). Despite these disappointing figures, PAGCOR managed to contribute PHP30.16 billion (US$491.3 million) to the national government through taxes, mandatory remittances, and support for public programs.
Tengco commented on the situation saying, "While market conditions improved in the second quarter, uncertainties remain, particularly with the recent uptick 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."
Adding to these challenges, S&P Global has projected a 7% decline in the Philippine gaming industry's gross gaming revenue (GGR) for 2026, following a 6% growth in 2025. This projected slowdown is partly attributed to more stringent regulations on online gaming, including tighter oversight of e-wallet connections to gambling platforms.
