The Philippine Amusement and Gaming Corporation (PAGCOR) reported a 26.64% year-on-year decline in total revenue for the first half of 2026, with a sharp reduction in electronic gaming income accounting for much of the decrease.

Revenue for the six months ended June 30 reached PHP43.32 billion, compared with PHP59.05 billion during the same period in 2025. Gaming operations remained PAGCOR’s main revenue stream, generating PHP38.92 billion, down 27.11% from PHP53.40 billion a year earlier.

PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco linked the weaker result to lower electronic gaming revenue and broader economic pressures affecting consumer activity.

“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,” Mr. Tengco said in a press release. 

Electronic Gaming Records Largest Decline

Revenue from eGames, eBingo and bingo grantees fell 41.85% to PHP18.60 billion. The same segment generated PHP32 billion during the first half of 2025.

The decline represented the largest reduction among PAGCOR’s gaming categories. Revenue from licensed casinos decreased 3.85%, while income from PAGCOR-operated Casino Filipino properties dropped 8.67%.

Tengco said conditions showed some improvement during the second quarter, although recent changes in global fuel prices continued to create uncertainty.

“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,” he added.

PAGCOR’s first-half figures followed an earlier warning that Philippine gross gaming revenue could fall by as much as 19% during 2026. Tengco previously cited geopolitical tensions in the Middle East and their effect on consumer spending as factors behind that outlook.

Higher Remittances Weigh on Net Income

PAGCOR’s net operating income declined 35.05% to PHP31.75 billion during the six-month period.

Net income recorded a much steeper fall, dropping 85.29% year-on-year to PHP1.58 billion. The regulator attributed that result partly to an increase in mandatory payments to the Philippine Sports Commission.

“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,” Mr. Tengco said.

PAGCOR transferred PHP2.01 billion to the sports commission during the first half of 2026. That amount increased 58.68% from PHP1.26 billion in the same period last year.

The revised calculation followed a Supreme Court ruling requiring the state gaming agency to provide the commission with 5% of its gross income rather than using its previous remittance method.

Nation-Building Payments Reach PHP30.16 Billion

Despite lower revenue and net income, PAGCOR contributed PHP30.16 billion to government and public programmes during the first six months of the year.

The national government received PHP18.49 billion through its mandated 50% share. PAGCOR also remitted PHP1.94 billion in franchise tax and allocated PHP7.36 billion for socio-civic projects.

Host cities received PHP340.05 million, while corporate income tax payments amounted to PHP9.87 million.

The regulator also provided PHP4.47 million in sports incentives and benefits for winning athletes, coaches and trainers under Republic Act No. 10699. These payments were separate from the PHP2.01 billion transferred to the Philippine Sports Commission.

The electronic gaming decline remained the main factor behind PAGCOR’s reduced operating revenue. Licensed and directly operated casinos also recorded lower results, though their percentage decreases were considerably smaller.

PAGCOR said it would continue working with industry stakeholders and using regulatory measures to support gaming-sector performance. Its financial results indicate that future earnings will depend partly on whether electronic gaming activity recovers after the substantial first-half reduction.