The Philippine Amusement and Gaming Corporation’s (PAGCOR) total revenue fell 26.6 percent year-on-year to PHP43.32 billion ($704 million) in 1H26, mainly due to a sharp decline in earnings from electronic gaming.
Gaming operations generated PHP38.92 billion ($633 million), down 27.1 percent from PHP53.40 billion ($868 million) a year earlier, according to results released by the regulator on July 30th.
Revenue collected from eGames, eBingo, and bingo licensees dropped 41.9 percent to PHP18.60 billion ($302 million), down from PHP32 billion ($520 million) in 1H25.
The segment accounted for nearly 48 percent of PAGCOR’s gaming revenue during the period.
Revenue from licensed casinos declined 3.9 percent, while income from casinos directly operated by PAGCOR fell 8.7 percent. The figures represent PAGCOR’s regulatory and operating revenue rather than total industry gross gaming revenue.
PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco attributed the weaker performance partly to economic conditions arising from geopolitical tensions in the Middle East.
“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,” Tengco said.
He noted that market conditions improved in the second quarter, although uncertainties remained amid a renewed increase in global fuel prices.
PAGCOR’s net operating income declined 35.1 percent to PHP31.75 billion ($516 million). Net income plunged 85.3 percent to PHP1.58 billion ($25.7 million).
Tengco said the steeper fall in net income was linked to higher mandatory remittances to the Philippine Sports Commission following a Supreme Court ruling.
The decision requires PAGCOR to remit 5 percent of its gross income to the commission, replacing the calculation method previously used by the regulator.
PAGCOR transferred PHP2.01 billion ($32.7 million) to the sports commission in 1H26, up 58.7 percent from PHP1.26 billion ($20.5 million) a year earlier.
Total mandatory contributions and other payments reached PHP30.16 billion ($490 million).
These included PHP18.49 billion ($301 million) representing the national government’s 50 percent share, as well as PHP7.36 billion ($120 million) for socio-civic projects.
