PAGCOR Projects 91% Net-Income Drop as Gaming Activity Weakens

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Altay Celikkaya

Content Manager

Updated: 25/08/26

Reading Time: 3 minutes

The Philippine Amusement and Gaming Corporation (PAGCOR) expects full-year net income to fall 91% in 2026 as weaker gaming activity, payment restrictions and higher mandated remittances weigh on its financial performance. The state gaming regulator presented the forecast during a House Committee on Appropriations hearing in Manila on 24 August. Net income is projected at PHP1.66 billion, compared with PHP17.47 billion in 2025. Total income is forecast to decline by 18% to PHP86.95 billion from PHP106.03 billion last year. PAGCOR Chairman and CEO Alejandro Tengco said the removal of direct e-wallet links from licensed online gaming platforms and economic pressure linked to the Middle East conflict affected both digital activity and consumer spending.

PAGCOR logo centred on an Ace Alliance blue gradient background representing the regulator’s 2026 financial outlook

Markets & Regions

Key Takeaways From PAGCOR’s 2026 Income Forecast

The revised outlook highlights the scale of the pressure across PAGCOR’s revenue base:

Full-year net income is projected to fall by approximately 91% to PHP1.66 billion.
Total income is expected to decline by 18% to PHP86.95 billion.
Gaming activity fell by about 40% after online platforms were separated from e-wallet applications.
PAGCOR expects to pay PHP300 million to PHP400 million each month towards its liability to the Philippine Sports Commission.
Online activity increased by about 10% in July and remained near that level in August.

E-Wallet Restrictions Reshape Digital Gaming Activity

In August 2025, the Bangko Sentral ng Pilipinas instructed supervised financial institutions to remove links providing in-app access to gambling sites. Tengco told lawmakers that the additional payment steps introduced after the change contributed to an approximately 40% reduction in gaming activity.

The disruption was already visible when the initial impact of e-wallet delinking on Philippine gaming activity emerged during the third quarter of 2025. Digital gaming later began to recover, but the improvement weakened as inflation and geopolitical uncertainty affected discretionary spending, particularly among lower- and middle-income customers.

First-Half Results Support the Weaker Outlook

PAGCOR’s official first-half results provide the clearest financial evidence behind the revised forecast. Total revenue fell 26.64% year on year to PHP43.32 billion, while gaming revenue declined 27.11% to PHP38.92 billion. Revenue from eGames, eBingo and bingo grantees dropped 41.85% to PHP18.60 billion.

The wider market showed a similar pattern as Philippine gaming revenue fell 20.3% in the second quarter of 2026. Licensed casinos proved more resilient, increasing GGR by 2.93%, while the electronic segment contracted sharply.

The comparison marks a reversal from PAGCOR’s 2025 revenue performance, when electronic and online gaming generated PHP53.33 billion and became the regulator’s largest gaming-income source.

PSC Payments Add Further Pressure

PAGCOR said higher mandated payments also contributed to the projected decline in net income. A Supreme Court ruling requires the regulator to remit 5% of its gross annual income to the Philippine Sports Commission, without the deductions previously applied.

The Court ordered PAGCOR to account for and remit the required share from 1993 onwards. Tengco told lawmakers that the resulting retroactive liability is estimated at PHP37 billion and may be paid over ten years. PAGCOR remitted PHP2.01 billion to the commission during the first half of 2026, up 58.68% year on year.

Late-Year Recovery Remains Possible

Tengco said online gaming activity improved by about 10% in July and held at a similar level in August. Integrated resorts also reported a slight increase in tourist patronage toward the end of July and early August.

PAGCOR expects the approaching peak gaming season to support activity during the final months of 2026. For 2027, the regulator projects net income of PHP1.91 billion, total revenue of PHP88.34 billion and approximately PHP63 billion in contributions to nation-building programmes.