PAGCOR Revenues Dip 26.64% in H1 2026 Amid Geopolitical Tensions and Legal Changes

The Philippine Amusement and Gaming Corporation (PAGCOR) saw its revenues decline by 26.64% in the first half of 2026, reaching P43.32 billion from January to June, a decrease from P59.05 billion in the same period in 2025. This downturn was primarily driven by a 27.11% reduction in revenues from gaming operations, which remain the state-run firm’s main revenue source. These earnings fell to P38.92 billion from P53.40 billion a year earlier. Further contributing to the decline, revenues from eGames, eBingo, and bingo grantees dropped by 41.85% to P18.60 billion from P32 billion year-on-year. Revenues from licensed casinos and PAGCOR-operated casinos also saw decreases, declining by 3.85% and 8.67%, respectively. PAGCOR chairman and CEO Alejandro Tengco stated that the 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." He added that while market conditions improved in the second quarter, uncertainties persist, particularly with the recent uptick in global fuel prices. "Nevertheless, we remain focused on strengthening industry performance through sound regulation and close collaboration with our stakeholders to ensure that the gaming sector continues to generate meaningful revenues for nation-building," Tengco said. The impact of these revenue trends was also evident in PAGCOR's profitability. The company's net operating income during the first semester declined by 35.05% to P31.75 billion, while its net income fell sharply by 85.29% to P1.58 billion. Tengco explained that the steep decline in net income was due to PAGCOR’s higher mandated remittances to the Philippine Sports Commission (PSC). Following a Supreme Court ruling, the state gaming agency is now required to remit five percent of its gross income to the PSC, a shift from the previously adopted computation. During the first half of the year alone, PAGCOR remitted P2.01 billion to the PSC, marking a 58.68% increase from the P1.26 billion remitted in the same period last year. Despite the decrease in overall revenues, PAGCOR reported that it contributed P30.16 billion to state coffers for nation-building during the first six months of 2026. This amount includes various mandated remittances such as the national government's 50% share (P18.49 billion), the 5% franchise tax (P1.94 billion), funding for socio-civic projects (P7.36 billion), host cities' share (P340.05 million), corporate income tax (P9.87 million), and sports incentives under Republic Act No. 10699 (P4.47 million).