TLDR
- PAGCOR forecasts nearly PHP87 billion in income for 2026, down from PHP106 billion in 2025
- The delinking of e-wallets from online gambling sites cut game activity by about 40%
- The Middle East crisis added economic pressure on middle and working class gamblers
- Peak season and rising tourism at integrated resorts may help income recover later in the year
- PAGCOR plans to set aside PHP61 billion for nation-building projects in 2026 and PHP63 billion in 2027
The Philippine Amusement and Gaming Corp. expects to bring in close to PHP87 billion in income this year. That number is lower than what the agency earned in 2025, when it reported PHP106 billion.
PAGCOR Chairman and CEO Alejandro Tengco shared the forecast during a congressional budget hearing. He said online gambling activity slowed down for a few different reasons.
E-Wallet Changes Slow Online Gambling
One major factor was the delinking of e-wallets from online gambling sites. Tengco said this made it less convenient for people to play, and games dropped by around 40% as a result.
He said online gambling had actually picked up in early 2026. But that early growth did not translate into stronger income once the e-wallet changes took effect.
Tengco also pointed to the Middle East crisis as a factor. He said most online gamblers come from the C, D, and E income brackets, which cover middle-income and working-class households.
These groups felt the economic effects of the crisis more directly. That made it harder for online gambling activity to fully recover, even after the early-year uptick.
The PHP87 billion forecast represents an 18% drop compared to last year’s income. PAGCOR expects the shortfall to total around PHP19.08 billion.
Tourism and Peak Season Could Lift Income
Even with the lower forecast, Tengco said there is room for improvement. He pointed to the upcoming peak season for gaming as a chance to make up some lost ground.
Integrated resorts have also reported more visitors recently. Tengco said PAGCOR noticed a small upward trend in tourism toward the end of July and into August.
That uptick could help support income during the back half of the year. PAGCOR is watching both tourism numbers and seasonal gaming patterns closely.
Despite the income drop, PAGCOR Assistant Vice President Cheryl de Guia said the agency will not cut its nation-building contributions. PAGCOR plans to set aside about PHP61 billion for development projects in 2026.
That spending will continue even as the agency manages a smaller income than the year before. The contribution is part of PAGCOR’s ongoing role in funding government projects while regulating the gaming industry.
Looking ahead, PAGCOR has set a 2027 income target of PHP88.33 billion. That figure is higher than this year’s forecast but still below the PHP106 billion earned in 2025.
For 2027, the agency plans to raise its nation-building allocation to PHP63 billion. That would be an increase from the PHP61 billion planned for this year.
PAGCOR’s income outlook for both years depends on several moving pieces. These include peak season gaming activity, tourist growth at integrated resorts, and the lasting effects of the e-wallet delinking policy.
The agency’s latest presentation to lawmakers lays out these expectations for 2026 and 2027. It also shows how PAGCOR is trying to balance a smaller income with its ongoing funding commitments.
