The Philippine Amusement and Gaming Corporation reported weaker financial results for the first nine months of 2026, led by a sharp decline in electronic gaming revenue.
Total revenue fell 23.4% year-on-year to PHP64.41 billion from PHP84.09 billion. Revenue from gaming operations dropped to PHP58.13 billion from PHP75.93 billion.
Net income declined more steeply, falling 84.9% to PHP2.17 billion from PHP14.32 billion.
PAGCOR Chairman and CEO Alejandro Tengco said electronic gaming was the main factor behind the downturn.
“Revenues from Electronic Gaming declined considerably by 37.23% from P44.03 billion in 2025 to P27.63 billion this year,” said Tengco.
eGaming Leads Revenue Decline
Electronic gaming, which includes eGames, e-bingo and bingo grantees, remained PAGCOR’s largest gaming revenue source despite falling to PHP27.63 billion.
The segment has faced tighter controls following the Central Bank’s decision requiring payment providers to remove direct links between e-wallets and online gambling platforms.
Licensed casinos generated PHP23.10 billion during the period, down 3.2% from PHP23.87 billion a year earlier.
Casino Filipino branches recorded PHP7.28 billion in revenue, an 8% decline, while poker operations fell 4.6% to PHP105.86 million.
Revenue from other related services dropped 38.6% to PHP3.04 billion. Other income remained broadly stable at PHP3.23 billion.
Sports Remittances Add Pressure on Profit
PAGCOR said its lower net income also reflected increased payments to the Philippine Sports Commission.
A Supreme Court ruling requires the agency to remit 5% of gross revenue to the PSC, which resulted in payments nearly double previous levels.
PAGCOR transferred PHP3.01 billion to the sports body during the first nine months.
Despite the weaker results, the agency remitted PHP45.28 billion in nation-building contributions and statutory obligations.
PHP27.61 billion went to the National Treasury as the government’s 50% share, while PHP2.90 billion was paid in franchise taxes.
PAGCOR also allocated PHP11.19 billion to socio-civic projects and PHP511.95 million to Casino Filipino host cities. Sports incentives for national athletes and coaches totaled PHP28.22 million, while corporate income tax payments reached PHP15.85 million.
PAGCOR Maintains Full-Year Outlook
Tengco said PAGCOR would continue its regulatory and operational responsibilities despite the decline.
“While we recognize the impact of lower gaming revenues on our financial performance, PAGCOR remains committed to carrying out its mandate,” said the PAGCOR chief, GMA News reports.
“We will continue to pursue responsible and sustainable operations while ensuring that the gaming industry adheres to regulatory standards,” added Tengco.
PAGCOR had already warned that 2026 revenue could finish below last year’s level.
In August, Tengco forecast an approximately 18% full-year decline to PHP86.95 billion. He cited the effect of e-wallet restrictions and geopolitical tensions in the Middle East affecting consumer spending.
At the time, he also said PAGCOR was seeing signs of improved gaming activity and hoped stronger year-end trading would offset part of the earlier weakness.