TLDR
- Philippines gross gaming revenue fell 15.9% year-on-year to PHP87.60 billion (US$1.42 billion) in Q1 2026
- Electronic gaming revenue dropped 22.4% to PHP39.90 billion, driving the overall decline
- Licensed casinos remained the top revenue source at PHP44.52 billion, down 9.7% from last year
- PAGCOR chairman cited softer consumer spending, Middle East tensions, and inflation as key factors
- The full year 2025 saw PHP396.14 billion in GGR, up 6.4%, suggesting Q1 2026 marks a reversal from recent growth
The Philippine gaming industry reported a 15.9% drop in gross gaming revenue during the first quarter of 2026, according to data from the Philippine Amusement and Gaming Corporation. Total GGR came in at PHP87.60 billion, or about US$1.42 billion.
The decline was largely driven by weakness in the electronic gaming segment. PAGCOR said electronic gaming revenue fell 22.4% year-on-year to PHP39.90 billion in the January to March period.
Electronic Gaming Takes the Biggest Hit
The electronic segment covers e-bingo, e-games, bingo grantees, and onsite and off-site poker. It accounted for roughly 45.6% of total GGR during the quarter.
Despite still making up a large share of overall revenue, the steep drop in this segment pulled down the entire industry’s performance. The electronic category had been a growth driver in 2025 but reversed course to start the new year.
PAGCOR chairman and chief executive Alejandro Tengco pointed to several factors behind the downturn. He cited softer discretionary spending among consumers, geopolitical tensions in the Middle East, and rising inflationary pressures.
These economic headwinds weighed on player activity across multiple segments. The impact was felt most heavily in the electronic gaming space.
Licensed commercial casinos remained the largest source of first-quarter gaming revenue. They contributed PHP44.52 billion, which was 9.7% lower than the same period last year.
That figure represented about 50.8% of total GGR for the quarter. Casinos continued to hold the top position even as their own revenue declined.
Land-Based Casinos Hold Steady but Still Decline
PAGCOR-managed casinos under the Casino Filipino brand brought in PHP3.17 billion during the three months ending March 31. That was down 8.1% from a year earlier and made up 3.6% of total revenue.
The declines across both land-based segments added to the broader pressure on the industry. No major category posted year-on-year growth in the quarter.
Tengco remained optimistic about the rest of 2026 despite the slow start. He said operators are continuing to build out their integrated resort offerings and adopt digital technologies.
He also pointed to responsible gambling initiatives as a focus area for operators. These efforts are expected to support long-term industry health.
Tengco added that once geopolitical uncertainty eases, consumer confidence and spending should gradually recover. That recovery, he said, would help improve industry results later in the year.
The weak Q1 follows a stronger full-year performance in 2025. The Philippines gaming industry posted GGR of PHP396.14 billion for all of 2025, up 6.4% compared to 2024.
Electronic and online gaming generated PHP201.12 billion in 2025, the highest among all segments. That growth helped offset weaker results from traditional casino operations during that period.
The contrast between the 2025 full-year gains and the Q1 2026 decline highlights how quickly conditions shifted. Economic pressures appear to have caught up with the sector after a year of expansion.
PAGCOR’s data shows the electronic gaming segment went from being the industry’s top growth driver in 2025 to its weakest performer in the opening quarter of 2026.
