Pagcor Forecasts 18 Percent Decline in 2026 Income to US$1.41 Billion on Online Gaming Weakness
TL;DR — Pagcor projects an 18% income drop to US$1.41 billion in 2026 with net income falling to PHP1.66 billion, driven by 40% weaker gaming activity after e-wallet delinking and Middle East tensions. First-half revenue declined 26.6% and net income 85.3%. Officials point to rising tourist volumes and peak season for potential late-year recovery.
SCCG Take — The forecast underscores revenue pressure on Philippine operators from platform changes. Regulators and investors must track second-half tourist-driven recovery against remittance obligations.
Pagcor expects its total income for 2026 to decline by about 18 percent year-on-year to nearly PHP86.95 billion (US$1.41 billion). The projection compares with PHP106.03 billion recorded in 2025. Net income is forecast to fall to PHP1.66 billion from PHP17.47 billion.
Alejandro Tengco, Pagcor chairman and chief executive, tied the weaker outlook partly to the delinking of electronic wallets from online gambling platforms. He reported a 40 percent downtrend in gaming activity because platforms are not as easy to use as before. Tengco also cited geopolitical tensions in the Middle East and their effect on consumer spending among middle-income and working-class players dominant in the online segment.
The agency reported a 26.6 percent year-on-year drop in total revenue for the first half of 2026 to PHP43.32 billion from PHP59.05 billion. Revenue from gaming operations declined 27.1 percent to PHP38.92 billion. The electronic gaming segment generated PHP18.60 billion, down 41.9 percent from the prior-year period. First-half net income fell 85.3 percent to PHP1.58 billion.
Sector Performance Data
The Philippine gaming sector produced gross gaming revenue of PHP88.14 billion in the second quarter of 2026. That total was 20.3 percent lower than the prior-year period but rose 0.6 percent sequentially. In June Tengco indicated that full-year GGR could decline by as much as 19 percent due to the same spending pressures.
Recovery Indicators
Tengco stated that integrated resort operators have reported higher tourist volumes. The agency observed a slight upward trend toward the end of July and early August. He expressed hope that the peak season will allow recovery of first-half revenue weakness in the latter part of the year, according to reporting by GGRAsia.
Reporting: GGRAsia
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Platform friction and macro headwinds are eroding Philippine gaming revenue faster than land-based tourism can offset.
We've partnered across Asia for three decades — when a major regulator forecasts this kind of contraction, it signals structural payment and product challenges operators can't ignore. The 40 percent online activity drop isn't temporary friction; it's a wake-up call for distribution strategy across regulated Southeast Asian markets.
- Online gaming activity down 40% after e-wallet delinking; electronic gaming revenue fell 41.9% first half
- Net income collapsed 85.3% to PHP1.58B; GGR down 20.3% year-on-year in Q2
- Tourist volumes rising; Pagcor eyes late-year recovery driven by integrated resort peak season
SCCG angle: We help operators navigate payment and platform pivots in regulated Asian markets. Our network includes payment providers, compliance advisors, and market-entry specialists who've solved friction like this across multiple jurisdictions — critical as platforms adapt to new payment rails and tourist dynamics shift.
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