The Philippine gaming industry generated PHP83.72 billion (US$1.33 billion) in gross gaming revenue during the third quarter of 2026, down 11.4% from the same period a year earlier as electronic gaming recorded another sharp decline.
Revenue for the three months to September 30 also fell 5% compared with the previous quarter, according to figures from the Philippine Amusement and Gaming Corp. The industry’s Q3 total stood at PHP94.51 billion in the corresponding period of 2025.
Electronic gaming accounted for most of the year-on-year decline. The segment, which includes E-Bingo, E-Games and licensed bingo operators, generated PHP35.28 billion during the quarter. That represented a fall of around 23% from PHP45.73 billion a year earlier.
The PHP10.45 billion reduction in electronic gaming revenue made up the majority of the industry’s overall contraction. The segment contributed approximately 42.1% of total Philippine gaming revenue during the reporting period.
PAGCOR chairman and chief executive Alejandro Tengco linked the weaker performance to pressure on consumer spending caused by broader economic conditions.
“These conditions have affected spending on discretionary activities, including gaming, and contributed to the weaker performance of certain segments,” he stated, as Manila Bulletin reports.
Electronic Gaming Remains the Main Weak Point
Electronic gaming continued to show a much steeper decline than the country’s licensed commercial casino sector.
Inflationary pressures and geopolitical uncertainty have affected household budgets, reducing spending on non-essential activities. Tengco has previously highlighted these factors as risks to the Philippine gaming market during 2026.
In June, he said full-year GGR could fall by as much as 19%, citing geopolitical tensions in the Middle East and their potential effect on consumer spending.
The latest quarterly data nevertheless indicate that the industry’s rate of contraction has slowed compared with earlier in the year. Philippine GGR fell 20.3% year-on-year during the second quarter, compared with the 11.4% decline recorded in Q3.
“We recognise the challenges facing the industry, but the slower pace of decline in the third quarter is an encouraging development,” Tengco said.
The sequential decline remained evident, however, with total third-quarter GGR coming in 5% below the previous three-month period.
Electronic gaming’s weaker result also marked a significant shift for a segment that has represented a substantial portion of the country’s gaming market. Its contribution in Q3 remained above 40% of total GGR despite the year-on-year revenue reduction.
Licensed Casinos Show Greater Stability
Licensed commercial casinos produced PHP45.38 billion in third-quarter GGR, making them the largest contributor to the Philippine gaming industry during the period.
Their revenue slipped only 0.4% from PHP45.56 billion in Q3 2025, showing considerably greater stability than the electronic gaming sector. Commercial casinos accounted for approximately 54.2% of total industry GGR.
PAGCOR-operated casinos under the Casino Filipino network generated another PHP3.03 billion, down 4.8% from PHP3.18 billion a year earlier. Those venues represented around 3.6% of the overall market.
The figures show that the industry’s third-quarter decline was concentrated primarily in electronic gaming rather than across all operating categories. Licensed commercial casinos remained close to their prior-year result while retaining the largest share of GGR.
The contrast between the two segments also shaped the industry’s overall performance. Electronic gaming lost PHP10.45 billion compared with the previous year, while commercial casino revenue changed relatively little over the same period.
Pagcor Sees Slower Decline as Positive Signal
PAGCOR acknowledged that the sector continues to face difficult conditions, although the smaller year-on-year decline in Q3 compared with Q2 provided some indication that the pace of deterioration had eased.
The regulator plans to continue working with licensed operators while maintaining its regulatory and responsible gaming requirements.
Tengco said:
“We will continue to work closely with our licensees to strengthen industry performance while ensuring that gaming activities are conducted responsibly and in accordance with regulatory standards.”
The third-quarter figures therefore present a mixed picture for the Philippine market. Overall GGR remained below both the previous year’s level and the preceding quarter, while electronic gaming continued to account for most of the lost revenue.
Licensed commercial casinos, however, recorded only a marginal year-on-year decrease and continued to generate more than half of total gaming revenue.
The industry’s performance over the remaining months of 2026 will determine how closely the full-year result aligns with Tengco’s earlier warning that annual GGR could decline by as much as 19%.