TLDR
- PAGCOR revenue fell 26.6% in the first half of 2026, dropping to PHP43.32 billion
- Net income dropped 85.3% to PHP1.58 billion
- Electronic gaming revenue fell 41.9% as Middle East tensions hit consumer spending
- Higher mandatory remittances to the Philippine Sports Commission added to the profit squeeze
- PAGCOR warns full-year gaming revenue could fall by as much as 19%
PAGCOR reported a drop in financial performance for the first half of 2026. The Philippine gaming regulator pointed to weaker electronic gaming and rising costs as the main causes.
The company released its results for the six months ending June 30, 2026. The numbers show pressure across nearly every part of the business.
Revenue and Profit Under Pressure
Total revenue fell 26.6% during the period. It dropped from PHP59.05 billion to PHP43.32 billion.
Operating income also declined. It fell 35.1%, going from PHP49.05 billion to PHP31.75 billion.
Net income saw the steepest fall of all. It dropped 85.3% to PHP1.58 billion.
Gaming operations remained PAGCOR’s largest source of revenue. Even so, this segment brought in PHP38.92 billion, a drop of 27.1% from last year.
Electronic gaming was hit the hardest. Revenue from e-games, e-bingo, and bingo grantees totaled PHP18.60 billion, down 41.9% from the year before.
Licensed casinos saw revenue slip 3.9%. Casino Filipino venues run directly by PAGCOR fell 8.7%.
Alejandro Tengco, chairman and CEO of PAGCOR, said the weakness stemmed mainly from the electronic games business. He linked the first-quarter slowdown to tensions in the Middle East that affected consumer spending.
Tengco said conditions improved in the second quarter. He noted that rising fuel prices remained a challenge during that stretch.
Other gaming operators in the Philippines have also pointed to fuel costs. They say higher prices have affected visitor spending and travel habits.
Remittances and Outlook
Net income fell much faster than revenue. PAGCOR said this was largely due to higher required payments to the Philippine Sports Commission.
A Supreme Court ruling ordered PAGCOR to remit 5% of its gross income to the Commission. This replaced the method used previously.
PAGCOR paid PHP2.01 billion to the Commission in the first half of the year. That marks a 58.7% increase from the prior year.
The heavier remittance burden reduced net income even further. This happened even as overall revenue was already lower.
PAGCOR said it still contributed PHP30.16 billion toward government programs and nation-building efforts in the first six months of 2026. That figure reflects the scale of its payments to state recipients.
In June, Tengco said the country’s gross gaming revenue could fall by as much as 19% for the full year. He cited ongoing effects from tensions in the Middle East.
The first-half results appear to track that earlier warning. Electronic gaming and core casino revenue both remain under pressure.
PAGCOR said it expects conditions to stay difficult in the near term. The regulator said it continues working with operators to help stabilize performance.
The rest of 2026 will show whether the second-quarter improvement is enough to offset the deeper first-quarter slowdown. Fuel prices and mandatory remittances remain key factors to watch going forward.
