PAGCOR revenue drops 26.6% on gaming slowdown in H1 2026
The Philippine Amusement and Gaming Corporation (PAGCOR) posted a 26.64 per cent decline in total revenues for the first half of 2026 as weaker gaming operations weighed on the state gaming agency’s financial performance.
PAGCOR reported total revenues of PHP43.32 billion ($705.7 million) for the January to June period, down from PHP59.05 billion ($961.9 million) in the same period last year. Gaming operations remained the agency’s largest source of income but fell 27.11 per cent year-on-year to PHP38.92 billion ($634 million) from PHP53.40 billion ($869.9 million).
Electronic gaming leads revenue decline
“Our first-half revenue results reflect the continuing impact of geopolitical tensions in the Middle East, which dampened consumer spending during the first quarter and affected overall industry performance,” Alejandro Tengco, PAGCOR Chairman and Chief Executive Officer, said.
Revenue from eGames, eBingo and bingo grantees dropped 41.85 per cent to PHP18.60 billion ($303 million) from PHP32 billion ($521 million) a year earlier. Meanwhile, revenues from licensed casinos declined by 3.85 per cent, while PAGCOR-operated casinos recorded an 8.67 per cent decrease.
PAGCOR warns of continuing market uncertainty
Tengco said market conditions improved during the second quarter but cautioned that uncertainty remains.
“While market conditions improved in the second quarter, uncertainties remain, particularly with the recent uptick in global fuel prices,” he said. “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.”
Net income falls 85% after higher remittances
PAGCOR’s financial results showed a sharper decline further down the income statement. Net operating income fell 35.05 per cent to PHP31.75 billion ($517.2 million), while net income plunged 85.29 per cent to PHP1.58 billion ($25.7 million).
“The steeper decline in net income was due to PAGCOR’s higher mandated remittances to the Philippine Sports Commission (PSC) following the Supreme Court’s ruling requiring the state gaming agency to remit five percent of its gross income to the PSC, instead of the previously adopted computation,” Tengco said. During the first six months of 2026, PAGCOR remitted PHP2.01 billion ($32.7 million) to the PSC, up 58.68 per cent from PHP1.26 billion ($20.5 million) in the same period last year.
Government contributions remain strong
Despite the weaker financial performance, PAGCOR said it contributed PHP30.16 billion ($491.3 million) to nation-building during the first half of the year through mandatory remittances and taxes.
The Philippine National Government received PHP18.49 billion ($301.2 million), representing its 50 per cent share of PAGCOR’s income. The agency also remitted PHP1.94 billion ($31.6 million) in franchise taxes, allocated PHP7.36 billion ($119.9 million) for socio-civic programmes, transferred PHP340.05 million ($5.5 million) to host cities, paid PHP9.87 million ($160,788) in corporate income tax and provided PHP4.47 million ($72,819) in incentives for winning athletes, coaches and trainers under Republic Act No. 10699.
S&P expects Philippine gaming contraction in 2026
PAGCOR’s weaker first-half results come as analysts expect the Philippine gaming industry to remain under pressure this year.
According to an S&P Global analysis reported by the Manila Bulletin, the Philippine gaming industry’s gross gaming revenue (GGR) is projected to contract by 7 per cent in 2026, reversing the 6 per cent growth recorded in 2025. The forecast would make the Philippines one of the few major gaming markets in Asia-Pacific expected to post negative growth this year.
S&P attributed the slowdown partly to tighter regulatory measures affecting online gaming, including restrictions on e-wallet links to gaming platforms. The ratings agency noted that while the Philippines remains one of the region’s most receptive online gaming markets, the rapid expansion of digital gambling has begun to moderate following regulatory intervention.
Recovery seen in 2027 but growth to remain modest
Despite the expected contraction this year, S&P forecasts the Philippine gaming industry to return to modest growth of around 2 per cent in 2027, although this would still trail the stronger expansion anticipated in regional markets such as Singapore, Malaysia and Cambodia.
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