PAGCOR first-half revenue drops 26.6% amid e-gaming slump and regulatory shifts
2026-07-30
Source: Global Gaming Insider
PAGCOR's first-half 2026 revenue fell 26.6% to PHP 43.32bn, driven by a sharp downturn in electronic gaming and regulatory changes such as the POGO ban and e-wallet restrictions; net income dropped 85.29% due to higher mandatory sports commission remittances.
The Philippine Amusement and Gaming Corporation (PAGCOR) posted a steep decline in its financial results for the first six months of 2026, with total revenue falling to PHP 43.32bn — a drop of 26.64% compared to PHP 59.05bn in the same period last year. The weaker performance was chiefly driven by a downturn in gaming income, especially from the electronic gaming segment.
Gaming operations, which remain PAGCOR's largest revenue source, brought in PHP 38.92bn during the period, down 27.11% year-on-year. The electronic gaming category was the hardest hit: revenue from eGames, eBingo and bingo grantees plunged 41.85% to PHP 18.6bn from PHP 32bn a year earlier. Licensed casino revenue fell by a comparatively modest 3.85%, while PAGCOR-operated casinos recorded an 8.67% decrease.
Net operating income declined 35.05% to PHP 31.75bn, and net income dropped even more sharply — by 85.29% to just PHP 1.58bn. The steep fall in net income was largely due to higher mandatory payments to the Philippine Sports Commission after a Supreme Court ruling that altered how the remittance is calculated. PAGCOR now must remit 5% of its gross income, up from the previous method, resulting in a 58.68% increase in such payments to PHP 2.01bn compared to the prior year.
Chairman and CEO Alejandro H. Tengco attributed the softer results primarily to weaker electronic gaming revenue. He also pointed to geopolitical tensions in the Middle East, which dampened consumer spending in the first quarter and affected the broader gambling industry.
The first-half figures also reflect the continuing impact of major regulatory changes in the Philippines. The government’s nationwide ban on Philippine Offshore Gaming Operators (POGOs) removed a formerly significant market segment, while the Bangko Sentral ng Pilipinas restricted e-wallet linkages to gambling platforms. Tengco had earlier said that e-wallet delinking initially cut PAGCOR's revenue by as much as 49%, though a gradual recovery has been observed as consumers adjust. Although PAGCOR did not directly attribute the half-year decline to these measures, they have contributed to the sector’s broader transition.
Second-quarter market conditions improved somewhat, but Tengco cautioned that uncertainty persists due to rising global fuel prices. He stated that PAGCOR will continue collaborating with industry stakeholders while maintaining effective regulation to ensure the gaming sector supports national development.
Despite the weaker financial performance, PAGCOR contributed PHP 30.16bn to nation-building initiatives over the six-month period, including remittances to the National Government, taxes, funding for socio-civic projects, local government shares, and statutory sports-related programmes.