The Philippine gaming industry is expected to remain under pressure in the second half of 2026, analysts said. Weak demand for land-based casinos, softer tourism, and inflation continue to weigh on consumer spending. Online gaming, however, is still providing some support.
The Philippine Amusement and Gaming Corp. (PAGCOR) has projected that industry gross gaming revenue could decline by 12 percent to 19 percent year on year in fiscal year 2026, to around PHP320 billion ($5.2 billion) to PHP350 billion ($5.7 billion), according to Unicapital Securities equity research analyst Jeri R. Alfonso, as reported by BusinessWorld. She said gaming activity remained relatively soft in the first quarter of 2026, with volumes insufficient to offset the sector’s challenges despite a gradual recovery in tourism.
Physical casinos continue to face headwinds from subdued VIP play, slower tourism growth, and tighter consumer spending. BDO Securities Corp. President John Tristan D. Reyes said the segment still lacks clear growth drivers, as weaker foreign visitation weighs on high-end gaming despite an increase in Chinese arrivals. Local players provide some stability, but volumes remain muted, he added.
Alfonso said the absence of VIP players remains a key challenge for major integrated resort operators, noting that Bloomberry Resorts Corp., Okada Manila, and Travellers International all reported weaker revenues in the latest earnings season because of softer high-roller activity.
Online gaming remains the brighter segment. Reyes said operators such as DigiPlus Interactive Corp. are expected to benefit from promotional activity and expansion into lower-income segments, positioning the company to outperform on the strength of its brand and growth plans.
Analysts also flagged inflation, slower economic growth, and energy-price shocks as risks. Alfonso said higher utility prices erode the disposable income of lower-middle-income bettors, pushing them to prioritize essentials over slot-machine spending. Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said tourism dented by oil shocks tied to Middle East tensions poses an added challenge, warning that renewed US-Iran tensions could lift oil prices and further weigh on the sector.
A recovery would likely depend on stronger tourism and improving macroeconomic conditions, Alfonso said, as higher visitor arrivals typically lift spending across hotels, resorts, entertainment, and gaming.
