The PAGCOR (Philippine Amusement and Gaming Corporation) has revealed that revenues in the first half of 2026 dropped by 26.6% from the previous year, emphasizing the impact of stricter regulations and drop in gaming operations on the country’s gambling industry.
Total revenues during January-June amounted to PHP43.32 billion (US$705.7 million) from PHP59.05 billion (US$961.9 million) a year ago. Among other operations, PAGCOR’s gaming business remained the highest contributor to revenues with PHP38.92 billion (US$634 million) which represents a decline of 27.1% as compared to the previous year.
According to Alejandro Tengco, the CEO and the Chairman at PAGCOR, the decline was triggered mainly because of the geopolitical issues in the Middle East which affected the spending of consumers in the first quarter and the demand for gaming.
PAGCOR’s revenue from electronic gaming has decreased considerably by 41.9% as compared to the previous year, and reached PHP18.6 billion (US$303 million).
The revenues from licensed casinos have decreased by 3.9%, whereas PAGCOR-operated casinos reported an 8.7% decrease.
The net operational income of PAGCOR has decreased by 35%, reaching PHP31.75 billion (US$517.2 million while the net profit has decreased sharply by 85.3% to PHP1.58 billion (US$25.7 million).
Despite weaker earnings, PAGCOR contributed PHP30.16 billion (US$491.3 million) to the national government through mandatory remittances, taxes and funding for public programs.
PAGCOR Chairman and CEO Alejandro Tengco said:
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.
The results come as S&P Global forecasts the Philippine gaming industry’s gross gaming revenue (GGR) to decline 7% in 2026, reversing the 6% growth recorded in 2025. The ratings agency attributed the slowdown partly to stricter online gaming regulations, including tighter controls on e-wallet connections to gambling platforms.