The Philippine Amusement and Gaming Corporation (PAGCOR) posted a sharp decline in first-half revenues as softer gaming activity, particularly in its electronic gaming business, offset continued growth in government remittances.
The state gaming regulator reported total revenues of P43.32 billion for the January-to-June period, down 26.64 percent from P59.05 billion a year earlier. Gaming operations, its biggest revenue source, contributed P38.92 billion, a 27.11 percent decline from the same period in 2025.
PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said the downturn was driven largely by weaker electronic gaming revenues, which fell 41.85 percent to P18.60 billion from P32 billion. Revenues from licensed casinos slipped 3.85 percent, while earnings from PAGCOR-operated casinos dropped 8.67 percent.
“Our 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,” Tengco said. He added that while business conditions improved in the second quarter, higher global fuel prices continue to cloud the outlook.
The weaker topline translated into lower profitability, with net operating income falling 35.05 percent to P31.75 billion. Net income plunged 85.29 percent to P1.58 billion, reflecting not only softer gaming revenues but also significantly higher mandatory remittances.
Tengco said remittances to the Philippine Sports Commission surged 58.68 percent to P2.01 billion after a Supreme Court ruling requiring PAGCOR to remit 5 percent of its gross income to the agency.
Despite the earnings decline, PAGCOR turned over P30.16 billion to support nation-building during the first half. The amount included the National Government’s share, franchise taxes, funding for socio-civic programs, host city allocations, corporate income taxes and incentives for national athletes and coaches.
The results underscore how regulatory obligations and global economic headwinds are squeezing profitability even as PAGCOR continues to channel a substantial share of its revenues to government programs.
