Revenue Decline and Market Factors
The Philippine Amusement and Gaming Corporation (PAGCOR) reported that its total revenues for the first half of 2026 fell by 26.64% to Php43.32 billion, down from Php59.05 billion in the same period last year. According to the state gaming agency, the decline was primarily driven by lower earnings from gaming operations, which dropped 27.11% to Php38.92 billion from Php53.40 billion a year earlier.
PAGCOR Chairman and CEO Alejandro H. Tengco attributed the downturn largely to weaker performance in the electronic gaming segment, where revenues from eGames, eBingo, and bingo grantees fell 41.85% to Php18.60 billion. Additionally, revenues from licensed casinos and PAGCOR-operated casinos decreased by 3.85% and 8.67%, respectively. Tengco noted that geopolitical tensions in the Middle East dampened consumer spending during the first quarter, though market conditions improved in the second quarter despite ongoing uncertainties like rising global fuel prices.
Net Income and Supreme Court Mandated Remittances
PAGCOR’s net operating income for the first semester decreased by 35.05% to Php31.75 billion, while its net income experienced a sharp decline of 85.29%, falling to Php1.58 billion. Tengco explained that the steeper drop in net income resulted from higher mandated remittances to the Philippine Sports Commission (PSC). This followed a Supreme Court ruling requiring PAGCOR to remit five percent of its gross income to the PSC, altering the previously used computation. Consequently, PAGCOR’s remittances to the PSC rose 58.68% to Php2.01 billion during the first half of the year, compared to Php1.26 billion in the same period of 2025.
Contributions to Nation-Building
Despite the overall revenue contraction, PAGCOR reported a total contribution of Php30.16 billion to nation-building initiatives during the first six months of 2026. The agency’s mandated contributions included:
- Php18.49 billion as the National Government’s 50% share.
- Php7.36 billion for socio-civic projects.
- Php1.94 billion for the 5% franchise tax.
- Php340.05 million as the host cities’ share.
- Php9.87 million for Corporate Income Tax.
- Php4.47 million for sports incentives and benefits under Republic Act No. 10699.
Tengco emphasized that the regulator remains focused on strengthening industry performance through sound regulation and stakeholder collaboration to ensure continued funding for national development.
Source: PAGCOR Official News Archive
