The Philippine Amusement and Gaming Corporation recorded a steep fall in revenue during the first half of 2026, mainly because its income from electronic gaming operators weakened.
PAGCOR generated PHP43.32 billion between January and June, down 26.64% from PHP59.05 billion in the same period of 2025. Revenue from gaming operations, the agency’s largest income source, declined 27.11% to PHP38.92 billion.
These figures describe PAGCOR’s own revenue from regulation, licensing and casino operations. They should not be confused with total gross gaming revenue generated across the entire Philippine gambling market.
Electronic Gaming Records the Sharpest Fall
The largest decline came from eGames, eBingo and bingo licensees. PAGCOR’s revenue from this group dropped 41.85%, falling from PHP32 billion in the first half of 2025 to PHP18.60 billion one year later.
This was a sharp reversal for a segment that had previously driven much of the industry’s expansion. Electronic gaming had benefited from mobile access, digital payments and the growing popularity of remotely played casino products.
PAGCOR Chairman and CEO Alejandro Tengco attributed the weaker result partly to geopolitical tensions in the Middle East. According to the agency, those conditions affected consumer spending during the first quarter, while higher global fuel prices remained a concern later in the reporting period.
Market conditions improved during the second quarter, but not enough to offset the earlier decline. PAGCOR did not provide a detailed quarterly breakdown showing how much revenue recovered between April and June.
Traditional casino income proved more stable than electronic gaming. Revenue from licensed private casinos declined by 3.85%, while income from PAGCOR-operated Casino Filipino venues fell by 8.67%.
The difference shows that the downturn was not distributed evenly. Electronic gaming accounted for the most serious weakness, while the land-based casino segment experienced smaller declines.
Higher Payments Push Net Income Down
PAGCOR’s net operating income fell 35.05% to PHP31.75 billion. Its final net income dropped much faster, declining 85.29% to PHP1.58 billion.
The much larger fall in net income was not caused only by lower gaming revenue. PAGCOR also had to make higher mandatory payments to the Philippine Sports Commission following a Supreme Court ruling.
The ruling requires PAGCOR to remit 5% of its gross income to the commission instead of using its previous calculation method. Its payment to the sports body reached PHP2.01 billion in the first half of 2026, up 58.68% from PHP1.26 billion a year earlier.
That increase placed additional pressure on the agency’s final profit at a time when its main revenue streams were already shrinking.
The result highlights PAGCOR’s unusual role in the Philippines. It regulates gambling, operates its own casinos and transfers a large share of its income to government programs.
Because of that structure, weaker PAGCOR earnings can affect public finances as well as the agency’s commercial performance.
Government Contributions Remain Above PHP30 Billion
Despite the revenue decline, PAGCOR contributed PHP30.16 billion to government and nation-building programs during the first six months of 2026.
The largest payment was PHP18.49 billion representing the national government’s 50% share. PAGCOR also paid PHP1.94 billion in franchise tax and provided PHP7.36 billion for socio-civic projects.
Other transfers included PHP340.05 million for host cities, PHP9.87 million in corporate income tax and PHP4.47 million in incentives for successful Filipino athletes, coaches and trainers. These payments, together with the PHP2.01 billion transferred to the Philippine Sports Commission, account for the reported PHP30.16 billion total.
PAGCOR now faces two connected challenges. It must support the recovery of licensed gaming activity while continuing to meet substantial public-funding obligations.
Electronic gaming will be central to that effort. If the segment rebounds during the second half of 2026, it could help restore PAGCOR’s revenue quickly because of its recent size and importance.
If the weakness continues, however, the agency may become more dependent on the slower but steadier income generated by licensed casinos and its own Casino Filipino properties.
The first-half figures do not prove that the Philippines’ digital gambling expansion has ended. They do show that PAGCOR’s earnings from the sector can fall rapidly when consumer spending weakens, making the second half of 2026 an important test of whether the decline was temporary or the beginning of a broader slowdown.