PAGCOR Reports 23.4% Revenue Decline in First Nine Months of 2026
Philippines.- 30 October 2026 | www.zonadeazar.com The Philippine Amusement and Gaming Corporation (PAGCOR), the Philippines’ state gaming regulator and operator, has reported a 23.41% year-on-year decline in revenue during the first nine months of 2026.
Between January and September, total revenue reached PHP64.41 billion (US$1.01 billion), compared with PHP84.09 billion during the corresponding period of 2025.
The decline was primarily driven by the electronic gaming segment, where revenue fell by 37.23%.
PAGCOR also reported an 84.85% reduction in net income, reflecting lower revenue and increased financial obligations towards sports development.
Total Revenue Falls by 23.41%
According to the results published on 29 October, PAGCOR recorded lower revenue across its principal operating segments.
Key indicators for January to September included:
- Total revenue: PHP64.41 billion, down 23.41%.
- Gaming operations revenue: PHP58.13 billion, a decline of 23.44%.
- Related services revenue: PHP3.04 billion, down 38.59%.
- Other income: PHP3.23 billion, compared with PHP3.20 billion in 2025.
The regulator attributed the decline to weaker gaming activity and lower earnings from related services.
Electronic Gaming Revenue Declines by 37.23%
The electronic gaming (eGaming) segment recorded the largest decline among PAGCOR’s principal operations.
Revenue fell from PHP44.03 billion in 2025 to PHP27.63 billion in 2026, representing a 37.23% decrease.
Despite the contraction, electronic gaming remains the regulator’s largest source of gaming revenue.
The category includes several digital gaming products, including electronic games and bingo.
Alejandro H. Tengco, Chairman and Chief Executive Officer of PAGCOR, identified the segment’s weaker performance as the main factor behind the revenue decline.
Digital Wallet Restrictions Affect the Market
The decline in electronic gaming comes amid tighter regulatory controls across the Philippine gambling sector.
In August 2025, the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, ordered supervised financial institutions to remove direct links to online gambling platforms from their applications and websites.
The measure particularly affected gambling links integrated into electronic wallets widely used by Filipino consumers.
Additional advertising restrictions and regulatory controls have also been introduced.
These developments form part of the regulatory context affecting the market, although PAGCOR has not attributed the entire revenue decline to any single measure.
Licensed Casino Revenue Also Declines
Revenue from licensed casinos recorded a more moderate reduction than electronic gaming.
The segment’s revenue declined by 3.22%, from PHP23.87 billion to PHP23.10 billion.
Despite the decrease, licensed casinos remain PAGCOR’s second-largest source of gaming revenue.
The difference between the two segments indicates that land-based casino revenues experienced a smaller contraction than electronic gaming.
Casino Filipino Revenue Falls by 8%
PAGCOR’s directly operated Casino Filipino properties also reported lower revenue.
Their earnings declined from PHP7.91 billion to PHP7.28 billion, representing an 8% year-on-year reduction.
Meanwhile, poker operations generated PHP105.86 million, compared with PHP110.97 million during the corresponding period of 2025.
This represented a 4.60% decline.
The results come as PAGCOR continues examining the separation of its regulatory responsibilities from its casino operating activities.
Net Income Drops by 84.85%
One of the most significantly affected indicators was the agency’s net income.
PAGCOR reported earnings of PHP2.17 billion, compared with PHP14.32 billion during the first nine months of 2025.
This represents an 84.85% decline.
Alongside lower revenue, the result was affected by a Philippine Supreme Court ruling that increased the regulator’s sports funding obligations.
The decision requires PAGCOR to remit 5% of its gross revenue to the Philippine Sports Commission (PSC).
The requirement nearly doubled the regulator’s previous contribution levels to the sports agency.
PAGCOR Contributes PHP45.28 Billion to Government Programmes
Despite weaker financial results, PAGCOR maintained substantial contributions to the Government and public programmes.
During the first nine months of 2026, its statutory contributions and transfers reached PHP45.28 billion (approximately US$708 million).
The principal recipients included:
- National Treasury: PHP27.61 billion.
- Philippine Sports Commission: PHP3.01 billion.
- Franchise taxes: PHP2.90 billion.
- Social and community programmes: PHP11.19 billion.
- Casino Filipino host cities: PHP511.95 million.
- Sports incentives: PHP28.22 million.
- Corporate income tax: PHP15.85 million.
These contributions form part of PAGCOR’s responsibilities as a state-owned entity and its role in supporting national programmes.
Alejandro Tengco Reaffirms Regulatory Commitment
Alejandro H. Tengco, PAGCOR Chairman and CEO, acknowledged the impact of lower gaming revenues on the organisation’s financial performance.
However, he emphasised that the regulator would continue fulfilling its responsibilities.
“While we recognise the impact of lower gaming revenues on our financial performance, PAGCOR remains committed to carrying out its mandate,” he stated.
Tengco also confirmed that the agency would continue promoting responsible and sustainable operations.
He reiterated the importance of ensuring that the gaming industry complies with established regulatory standards.
Industry Impact and Next Steps
PAGCOR’s results highlight the challenges facing the Philippine gambling industry during 2026.
The 37.23% decline in electronic gaming revenue demonstrates the importance of digital gambling within the regulator’s financial structure.
At the same time, lower profits and increased sports funding obligations have placed further pressure on its financial performance.
PAGCOR will continue strengthening market supervision while monitoring developments across its operating segments during the final quarter of the year.
With revenue of PHP64.41 billion and a 23.41% year-on-year decline, PAGCOR faces a more challenging financial environment, although it continues contributing more than PHP45 billion to government programmes and remains committed to regulating the Philippine gambling industry.
Edited by: @fonta
