PAGCOR Faces Revenue Decline Due to Geopolitical Pressures

The Philippine Amusement and Gaming Corporation (PAGCOR) reported a 26.64% decline in total revenues in the first half of 2026 as lower earnings from gaming operations weighed on the state gaming agency's financial performance.

PAGCOR's total revenues reached Php43.32 billion from January to June, down from Php59.05 billion in the same period last year.

Revenues from gaming operations declined

Revenues from gaming operations, which remained the corporation's primary revenue source, declined 27.11% to Php38.92 billion from Php53.40 billion a year earlier.

PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said the decline was largely driven by weaker revenues from the electronic gaming segment.

Revenues from eGames, eBingo and bingo grantees fell 41.85% to Php18.60 billion from Php32 billion in the first half of 2025, while revenues from licensed casinos and PAGCOR-operated casinos declined 3.85% and 8.67%, respectively.

Statements by Mr Tengco

"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," Mr. Tengco said.

"While market conditions improved in the second quarter, uncertainties remain, particularly with the recent uptick in global fuel prices.

“Nevertheless, we remain focused on strengthening industry performance through sound regulation and close collaboration with our stakeholders to ensure that the gaming sector continues to generate meaningful revenues for nation-building," he added.

PAGCOR's net operating income during the first semester declined 35.05% to Php31.75 billion, while net income fell 85.29% to Php1.58 billion.

“The steeper decline in net income was due to PAGCOR’s higher mandated remittances to the Philippine Sports Commission (PSC) following the Supreme Court's ruling requiring the state gaming agency to remit five percent of its gross income to the PSC, instead of the previously adopted computation,” Mr. Tengco said.

During the first half of the year alone, PAGCOR remitted Php2.01 billion to the PSC, up 58.68% from Php1.26 billion in the same period last year.

Despite the decline in revenues, PAGCOR contributed Php30.16 billion to nation-building during the first six months of 2026.

Aside from the PSC, PAGCOR’s other mandated remittances included the National Government's 50% share (Php18.49 billion); the 5% franchise tax (Php1.94 billion); funding for socio-civic projects (Php7.36 billion); host cities share (Php340.05 million); Corporate Income tax (Php9.87 million); and sports incentives and benefits for winning athletes, coaches and trainers under Republic Act No. 10699 (Php4.47 million).