PAGCOR Blames Global Tensions for 41.85% Drop in Philippine iGaming Revenue
2026-07-30
Source: iGaming Expert
PAGCOR reports a 41.85% year-on-year drop in Philippine iGaming revenue for H1 2026, citing Middle East tensions and consumer spending slowdown, while net income fell 85% due to higher remittances and black market concerns linger.
The Philippine Amusement and Gaming Corporation (PAGCOR) has reported a sharp decline in iGaming revenue for the first half of 2026, attributing the downturn to geopolitical instability in the Middle East. Revenue from eGames, eBingo, and bingo grantees fell by 41.85% year-on-year to P18.6 billion (£226.4 million), continuing a downward trend observed in the first quarter.
Combined with a 3.85% drop in licensed casinos and an 8.67% decline in PAGCOR-operated venues, total gaming operator revenue slumped 27.11% to P38.9 billion (£472.3 million) in H1 2026, compared to P53.4 billion (£648.4 million) in the same period last year. The regulator pointed to surging energy prices, inflation spikes, and supply chain disruptions linked to the US-Iran conflict as factors dampening consumer spending.
PAGCOR Chair and CEO Alejandro Tengco noted that while market conditions improved in the second quarter, uncertainties persist due to rising global fuel prices. He described the results as reflecting the continuing impact of geopolitical tensions, which affected overall industry performance during the first half.
The iGaming sector had been a bright spot in 2025, growing 30% even as land-based operations struggled, making the current revenue contraction particularly notable. Tengco has previously urged closer collaboration among global gaming regulators to address challenges stemming from the Middle East conflict.
Net Income Plunges on Higher Remittances
PAGCOR's net income dropped by a striking 85.29% year-on-year to P1.58 billion (£19.2 million), though this was largely due to increased remittance requirements to the Philippine Sports Commission (PSC) following a Supreme Court ruling. The regulator remitted P2.01 billion (£24.4 million) in the first half of 2026, up from P1.26 billion in the same period of 2025.
Black Market Concerns Persist
Compounding the regulatory landscape, a new United Nations report has highlighted the continued presence of illegal gambling operations in the Philippines despite the 2024 ban on Philippine offshore gaming operators (POGOs). The report described so-called 'guerrilla POGOs' that evade detection, noting a convergence of online gambling with cyber-enabled fraud, human trafficking, and money laundering. These activities have reportedly shifted to neighboring countries such as Cambodia, Myanmar, and Indonesia, but remain a concern for Philippine authorities.
Tengco reaffirmed PAGCOR's commitment to strengthening industry performance through sound regulation and close stakeholder collaboration, even as the black market challenge persists.