PAGCOR GGR Declines in First Half of 2026 Due to ‘Tensions in the Middle East’

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This comes after a stable 2025 FY results of PHP106 billion

Philippines

PAGCOR’s first-half numbers point to a softer start to 2026 for the Philippine gaming market, with revenue hit hardest by electronic gaming. 

The state regulator said on Thursday that total revenue fell 26.64% year on year to PHP43.32 billion ($703.25 million) for the six months to June 30, down from PHP59.05 billion a year earlier. 

Gaming operations remained the main driver, but that line also slid sharply with a 27.11% decrease year-on-year. There was also a significant drop in eGames, eBingo and bingo grantees falling 41.85% from PHP32 billion to PHP18.60 billion. 

eGaming Leads the Slide

PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said in a press release: “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.” 

He added: “While market conditions improved in the second quarter, uncertainties remain, particularly with the recent uptick in global fuel prices.” 

The figures build on earlier 2026 warnings that Philippine gaming revenue could ease this year after a strong 2025 base.

Taxing The Bottom Line

Licensed casinos and PAGCOR-run Casino Filipino properties also posted declines, though far less severe. Net operating income fell 35.05% to PHP31.75 billion, while net income tumbled 85.29% to PHP1.58 billion.

The Philippine government’s plans to privatise Casino Filipino may result in a significant shortfall for the Universal Health Care fund according to a report by Geronimo Law.

PAGCOR said the profit squeeze partly reflected higher mandatory payments to the Philippine Sports Commission after a Supreme Court ruling changed how the agency’s remittances are calculated.

Still Paying Into The State

Even with weaker earnings, PAGCOR remitted PHP30.16 billion to government and public programmes in the half-year period. 

That included PHP18.49 billion for the national government, PHP1.94 billion in franchise tax and PHP7.36 billion for socio-civic projects. The 2025 full-year results, showed a more resilient position, with revenue still above PHP106 billion and net income rising despite the exit of offshore gaming.