Pagcor revenues plunge 23% in Q3 as economic pressures weigh on gambling

Marian Hukom/Rappler

The vast majority of the decline in revenue came from weaker electronic gaming, such as eGames and eBingo. Traditional casinos also struggled, though considerably less so.

AT A GLANCE

• The Philippine Amusement and Gaming Corporation (Pagcor) reported a 23.41% decline in revenue for the first nine months of 2026, with total revenues falling to P64.41 billion from P84.09 billion.
• The decline was primarily driven by a 37.23% drop in electronic gaming revenues, while traditional casinos also faced losses, albeit smaller, with licensed casino revenues down 3.22%.
• Factors contributing to the revenue decline include inflation, geopolitical tensions, and restrictions on online gambling, with Pagcor's net income plummeting 84.85% due to increased remittances to the Philippine Sports Commission.

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MANILA, Philippines – Even gamblers appear to be feeling the squeeze of difficult economic conditions, as the Philippine Amusement and Gaming Corporation (Pagcor) reported a 23.41% decline in revenue in the first nine months of 2026.

Pagcor said on Thursday, October 29, that its total revenues fell to P64.41 billion from P84.09 billion in the same period last year.

The vast majority of the lost revenue came from weaker electronic gaming, which includes eGames and eBingo. Revenues from the segment plunged 37.23% to P27.63 billion from P44.03 billion.

Traditional casinos also struggled, although their losses were considerably smaller. Licensed casino revenues fell 3.22% to P23.10 billion, while Pagcor-operated Casino Filipino branches recorded an 8% decline to P7.28 billion.

While Pagcor’s latest announcement did not elaborate on the causes of the slowdown, the state gaming regulator had previously pointed to inflation and geopolitical tensions in the Middle East as major factors affecting the industry.

In its H1 2026 earnings report, Pagcor chairman Alejandro Tengco said the Middle East conflict had dampened consumer spending during the first quarter, with rising global fuel prices adding uncertainty.

In a separate August 10 statement, Tengco cited inflation and the geopolitical crisis, saying these had “weighed on consumer spending, particularly on discretionary activities.”

Indeed, Filipino consumers have been increasingly stretched by rising prices. Inflation accelerated to 7.2% in September with further escalations expected, while economic growth slowed to just 2.3% in the second quarter.

A May survey of 800 urban Filipinos by research firm Organic Intelligence also found that 68% were dining out less, while 42% had borrowed money for essentials such as food and transportation. 

Other factors may also be contributing to weaker gambling activity to a lesser extent, including restrictions introduced in 2025 that removed direct links to online gambling platforms from electronic wallets.

Meanwhile, Pagcor’s net income plunged 84.85% to P2.17 billion from P14.32 billion. The regulator attributed the decline partly to a Supreme Court ruling requiring higher remittances to the Philippine Sports Commission, which rose to P3.01 billion from P1.80 billion.

Despite lower revenues, Pagcor said it contributed P45.28 billion to government programs and statutory obligations, including P27.61 billion to the National Treasury and P3.01 billion to the sports commission. – Rappler.com