PAGCOR forecasts 18% income drop as gaming market slows

PAGCOR Chairman Alejandro Tengco has stated that the regulator expects to generate nearly PHP 87bn ($1.41bn) in income this year, down 18% year-over-year, as the Middle East crisis and stricter gambling regulations weighed on earnings.

At a congressional budget hearing, he noted that the slowdown in income can be attributed to the delinking of electronic wallets from online gambling platforms.

Commenting on this development, Tengco stated: “We had experienced a downtrend of about 40% in gaming activities because it’s not as easy as before when platforms were linked.’’

He added that although online gambling saw an increase in early 2026, this growth remained limited by the ongoing Middle East crisis.

Tengco said the impact was particularly significant among the lower and middle-income segments that make up a large proportion of the country's online gambling audience.

Despite the weaker first-half performance, Tengco is hopeful that gaming activity could recover toward the end of the year as the market enters its traditional peak season.

The regulator has already observed an improvement in activity, with Tengco pointing to a slight upward trend in late July and early August. Growth in tourism and activity at the country's integrated resorts could provide an additional boost to total gaming revenue.

Global Gaming Insider recently analyzed the transformation of the Philippine online gaming market, which shifted from an offshore model dominated by POGOs to a domestic sector led by PIGOs (Philippine Inland Gaming Operators).

Following the POGO ban in late 2024, PAGCOR's fee reductions helped accelerate PIGO growth, making online gaming the largest contributor to Philippine gaming revenue in 2025.

However, tighter rules, including those discussed by Tengco regarding payments alongside wider economic pressures, have since contributed to a market contraction. The analysis also touches on the impact of the Middle East conflict Tengco highlighted.