PAGCOR Eyes Flat Gross Gaming Revenue as Tourism Numbers Decline
The Philippine gaming sector faces a cautious 2026 as regulators and operators weigh tepid tourism and lasting payment restrictions against pockets of resilience in electronic games.
Key Takeaways:
- Gross gaming revenues expected to remain stagnant due to declining tourist arrivals
- Payment disruptions and policy shocks led to sharp online revenue declines
- Industry seeks policy adjustments to revive growth and address regulatory challenges
PAGCOR sees gross gaming revenue holding near last year’s levels rather than growing significantly.
Gross Gaming Revenue Seen Holding Steady into 2026
Alejandro H. Tengco, PAGCOR chairman and CEO, told BusinessWorld, “GGR will be flat primarily because as of now, we’re still looking at the effects of the (declining) number of tourist arrivals,” underscoring the sensitivity of land-based receipts to cross-border flows.
Policy shock and payment disruption dented online receipts
The removal of e-wallet links to gambling platforms last August produced an abrupt contraction in online transaction volumes, with PAGCOR officials estimating revenue declines in the 40–50% range during the immediate aftermath.
Industry data show some recovery in e-games revenue but not enough to offset losses; reporting through Q3 2025 found e-games growth even as overall GGR eased.
PAGCOR is deploying enforcement tools, including an AI system to detect illicit sites, and is preparing recommendations to the central bank on restoring regulated payment channels.
Payment Curbs and Tourism Headwinds Weigh on Recovery
Executives caution that sustained GGR recovery depends on both policy adjustments and tourist inflows. Analysts and advocacy groups argue for tougher taxation and tighter controls to curb harm while preserving government receipts.
PAGCOR officials say legalization moves by some operators could provide upside if paired with monitored payment solutions.
