The Philippine Amusement and Gaming Corporation (PAGCOR) reported a sharp decline in its financial performance during the first six months of 2026. The weaker results were primarily driven by lower gaming revenues, particularly from the electronic gaming segment.
Total revenue for the period reached PHP 43.32bn, down 26.64% from PHP 59.05bn recorded in the first half of 2025. Gaming operations remained PAGCOR's primary source of income, contributing PHP 38.92bn, although this represented a 27.11% year-on-year decline.
The largest drop came from the electronic gaming segment. Revenue generated from eGames, eBingo and bingo grantees fell 41.85% to PHP 18.6bn from PHP 32bn a year earlier. Revenue from licensed casinos also declined by 3.85%, while PAGCOR-operated casinos recorded an 8.67% decrease.
Chairman and Chief Executive Officer Alejandro H. Tengco said the weaker performance was largely attributable to softer electronic gaming revenue. He added that geopolitical tensions in the Middle East dampened consumer spending during the first quarter, affecting overall gaming industry performance.
The weaker results also come as the Philippine gaming industry continues to adjust to major regulatory changes introduced over the past year. The Government's nationwide ban on Philippine Offshore Gaming Operators (POGOs) removed a once-significant segment of the market, while restrictions imposed by the Bangko Sentral ng Pilipinas on linking e-wallets to gambling platforms have reshaped how players access gaming services.
Earlier this year, Tengco said the e-wallet delinking had initially reduced PAGCOR's revenues by as much as 49%, although he noted that revenue has been gradually recovering as consumers adapt.
While PAGCOR did not specifically attribute its first-half performance to these measures, they have added to the industry's broader transition.
Although market conditions improved during the second quarter, Tengco noted that uncertainty remains due to rising global fuel prices. He said PAGCOR would continue working with industry stakeholders while maintaining effective regulation to support the gaming sector's contribution to national development.
Net operating income for the first half fell 35.05% to PHP 31.75bn, while net income declined 85.29% to PHP 1.58bn.
According to Tengco, the sharper fall in net income reflected higher mandatory remittances to the Philippine Sports Commission following a Supreme Court decision requiring PAGCOR to remit 5% of its gross income rather than using the previous calculation method. Payments to the commission increased 58.68% year-on-year to PHP 2.01bn.
Despite the weaker financial results, PAGCOR contributed PHP 30.16bn to nation-building initiatives during the six-month period through remittances to the National Government, taxes, funding for socio-civic projects, local government shares and statutory sports-related programmes.
Contributions to nation-building (PHP in billions)
January - June 2026
PAGCOR's net income fell 85.29% after higher mandatory remittances to the Philippine Sports Commission following a Supreme Court ruling
