The Philippine gaming industry recorded gross gaming revenue (GGR) of Php88.13 billion in the second quarter of 2026, marking a 20.33% decline from the Php110.63 billion reported during the same period a year earlier.
The downturn reflected weaker performance from electronic gaming, while inflation and renewed geopolitical tensions in the Middle East also affected consumer spending. PAGCOR Chairman and CEO Alejandro H. Tengco said discretionary activities faced pressure during the quarter.
“The decline was driven by several factors, including the impact of inflation and the geopolitical crisis in the Middle East, which weighed on consumer spending, particularly on discretionary activities,” Mr. Tengco said.
Licensed Casinos Retain The Largest Share
Licensed casinos remained the biggest contributor to the industry’s second-quarter GGR. They generated Php45.37 billion, representing 51.49% of the total.
Electronic gaming produced Php39.85 billion, equivalent to 45.21% of industry revenue. The segment includes E-Games, E-Bingo, bingo and poker, and its weaker results played a major role in the overall decline.
Casinos operated directly by PAGCOR generated another Php2.90 billion during the quarter, accounting for 3.30% of total GGR.
The figures show that the electronic segment remained a substantial part of the market despite its weaker performance. Together, licensed casinos and electronic gaming accounted for almost all reported industry revenue during the three-month period.
The quarterly results also highlight the continued importance of licensed casinos to the domestic market. Their Php45.37 billion contribution exceeded electronic gaming revenue by more than Php5 billion, leaving casinos with the largest individual share of total GGR during the period.
PAGCOR Expects Conditions To Improve
Tengco said the industry could recover as operators work on improving their services, introducing technological changes and reinforcing responsible gaming practices.
“PAGCOR remains committed to implementing measures that will help increase GGR and further strengthen the industry’s performance,” he said.
“We will continue working with our stakeholders to ensure that the gaming industry remains a meaningful contributor to nation-building,” Tengco added.
The latest quarterly results follow a weaker first half for PAGCOR itself. Last month, the regulator reported that its total revenue had fallen 26.64% in the first six months of 2026 because of lower earnings from gaming operations. Another report put PAGCOR’s first-half revenue at Php43.32 billion, reflecting a 26.6% decline.
The second-quarter figures therefore point to continued pressure across the Philippine gaming market, with electronic gaming emerging as the main area behind the quarterly contraction. PAGCOR expects operators’ efforts around service improvements, technology and responsible gaming to support the sector as it moves through the remainder of 2026.
The regulator has also indicated that it will continue working with industry stakeholders as operators respond to changing consumer conditions. The focus on responsible gaming comes alongside efforts to improve performance, giving the sector several areas to address s it seeks to recover from the second-quarter decline.
Source:
“PH gaming industry down 20% in Q2 2026 to Php88.13B”, pagcor.ph, August 10, 2026
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