PAGCOR H1 2026 Profit Falls as Gaming Revenue Declines

The Philippine Amusement and Gaming Corporation (PAGCOR) recorded weaker financial results during the first half of 2026, with declining electronic gaming revenue, higher mandatory remittances and external economic pressures contributing to the downturn.

Revenue and Profit Decline

For the six months ending 30 June 2026, PAGCOR reported total revenue of PHP43.32 billion, down 26.6% from PHP59.05 billion in the same period last year. Operating income also fell 35.1%, decreasing from PHP49.05 billion to PHP31.75 billion, while net income dropped 85.3% to PHP1.58 billion.

Gaming operations remained PAGCOR’s primary revenue source, generating PHP38.92 billion during the period. However, this represented a 27.1% year-on-year decline. Revenue from the electronic gaming segment including e-games, e-bingo and bingo grantees totalled PHP18.60 billion, reflecting a 41.9% decrease compared to the previous year.

Licensed casino revenue also declined by 3.9%, while income from Casino Filipino properties operated by PAGCOR fell 8.7%, contributing to the overall reduction in gaming revenue.

External Factors Affect Performance

PAGCOR Chairman and CEO Alejandro Tengco attributed the weaker results mainly to the slowdown in the electronic gaming sector. He said geopolitical tensions in the Middle East affected consumer spending during the first quarter, leading to softer performance across the industry.

According to Tengco, business conditions improved during the second quarter, although higher fuel prices continued to affect travel patterns and discretionary spending. Similar concerns have also been raised by other gaming operators in the Philippines.

Despite these challenges, Tengco said PAGCOR remains committed to working closely with industry stakeholders while maintaining effective regulation to support the long-term growth of the country's gaming sector.

Higher Mandatory Remittances Reduce Earnings

The regulator said the sharp fall in net income was largely driven by increased mandatory payments to the Philippine Sports Commission (PSC).

Following a Supreme Court ruling, PAGCOR is now required to remit 5% of its gross income to the PSC, replacing the previous calculation method. As a result, the regulator transferred PHP2.01 billion to the commission during the first half of 2026, an increase of 58.7% compared to the previous year.

Although profitability declined, PAGCOR stated that it contributed PHP30.16 billion to government programs and other mandated beneficiaries during the reporting period.

Full-Year Outlook Remains Challenging

Earlier this year, Tengco warned that the Philippines' gross gaming revenue (GGR) could decline by up to 19% in 2026 due to the impact of geopolitical uncertainty on consumer spending.

The first-half results reflect those concerns, with both electronic gaming and traditional casino operations reporting weaker performance. PAGCOR said it will continue working with operators to improve market conditions as it navigates ongoing economic pressures, including elevated fuel costs and higher statutory remittances.