PAGCOR revenue decline deepens as net income falls
The Philippine Amusement and Gaming Corporation (PAGCOR) entered the final quarter of 2026 with a markedly weaker financial position after revenue and net income fell during the first nine months of the year. The results show that the regulator’s earnings were affected most heavily by electronic gaming, while its licensed casinos and Casino Filipino branches also recorded declines.
PAGCOR reported PHP64.41 billion in total revenue for January to September, 23.41% below the PHP84.09 billion recorded in the same period of 2025. Net income fell to PHP2.17 billion from PHP14.32 billion, a decline of 84.85%.
The PAGCOR revenue decline is significant not only because of its scale, but also because the drop in net income was considerably steeper. The figures reflect weaker gaming and related-service revenue alongside the impact of a higher statutory remittance obligation to the Philippine Sports Commission (PSC).
PAGCOR Revenue Decline Led by Electronic Gaming
Electronic gaming revenue fell 37.23% to PHP27.63 billion from PHP44.03 billion a year earlier, according to PAGCOR’s nine-month results. The PHP16.40 billion reduction made this segment the largest source of the overall revenue shortfall.
Electronic gaming had been PAGCOR’s leading gaming revenue category, so its contraction had a substantial effect on the regulator’s total. PAGCOR Chairman and CEO Alejandro H. Tengco identified the segment’s weaker performance as a major factor behind the decline.
The results cover electronic gaming activity during a period of tighter scrutiny and changes to payment arrangements connected with online gaming. In October 2025, the central bank directed payment providers to remove direct links between e-wallets and online gaming sites. Regulatory controls have also been tightened. These developments form part of the operating context, but the published figures do not quantify how much each measure contributed to the revenue fall.
The data also do not establish whether players spent less, moved between platforms or shifted to unlicensed services. Those conclusions would require additional market evidence. What the results do show is that the electronic gaming category generated considerably less revenue for PAGCOR than it did during the first nine months of 2025.
Casino revenue declines across other segments
PAGCOR’s licensed casino segment, its second-largest gaming revenue source, produced PHP23.10 billion in the nine-month period. That was 3.22% lower than the PHP23.87 billion reported a year earlier.
The decline was more limited than the one in electronic gaming, but it added to the wider reduction in gaming income. Revenue from PAGCOR-operated Casino Filipino branches fell 8% to PHP7.28 billion from PHP7.91 billion.
Poker operations also moved lower. Revenue declined 4.60% to PHP105.86 million, compared with PHP110.97 million in the same period last year.
Across all gaming operations, revenue fell 23.44% to PHP58.13 billion from PHP75.93 billion. The results indicate that the revenue weakness was not confined to one part of PAGCOR’s portfolio, although electronic gaming accounted for the largest individual decline.
Revenue from other related services also dropped, falling 38.59% to PHP3.04 billion. Other income, by contrast, remained broadly stable at PHP3.23 billion, compared with PHP3.20 billion a year earlier.
Higher remittances add pressure to net income
The fall in net income was sharper than the decline in total revenue. PAGCOR attributed the lower result in part to a Supreme Court ruling requiring it to remit 5% of its gross revenues to the PSC, nearly doubling the previous remittance level.
PAGCOR paid PHP3.01 billion to the sports agency during the first nine months of 2026. The remittance obligation affects how much income remains after the regulator meets its statutory responsibilities, particularly during a period when gaming revenue is already lower.
The figures should be read separately: total revenue measures income generated across PAGCOR’s operations and services, while net income reflects the result after relevant costs and obligations. The 84.85% fall in net income therefore should not be interpreted as an equivalent decline in revenue.
The available results identify the PSC remittance ruling as a factor behind the income reduction, but they do not suggest it was the only influence on the final result. Lower earnings from gaming operations and related services also contributed to the weaker performance.
PAGCOR reports PHP45.28 billion in public contributions
Despite lower revenue, PAGCOR said it delivered PHP45.28 billion in contributions to nation-building and other statutory obligations from January to September.
The National Treasury received PHP27.61 billion as the government’s 50% share, while PHP3.01 billion went to the PSC. PAGCOR also paid PHP2.90 billion in franchise taxes.
Other reported contributions included PHP11.19 billion for socio-civic projects and PHP511.95 million for cities hosting Casino Filipino properties. The agency listed PHP28.22 million in incentives for national athletes and coaches who won international competitions, along with PHP15.85 million in corporate income tax.
These payments underline PAGCOR’s role beyond gaming regulation and operations. Its revenue performance has implications for the public bodies and programmes that receive funds from the agency. At the same time, the reported contribution total should not be confused with net income: the two figures represent different financial measures.
What the nine-month results signal
PAGCOR’s results point to a difficult year for its revenue base, led by the contraction in electronic gaming. Licensed casinos, Casino Filipino branches, poker and related services also recorded declines, while other income remained comparatively steady.
The next reporting period will help show whether the downward trend continued through the end of 2026. Relevant indicators include electronic gaming revenue, performance across casino operations, related-service income and the effect of statutory remittances on net income.
For now, the figures establish the scale of the setback but do not provide a complete explanation of consumer behaviour or the relative impact of each regulatory change. Further data would be needed to determine whether the segment declines reflect a temporary adjustment or a more persistent shift in market conditions.
PAGCOR has said it will continue strengthening operations and regulatory oversight while ensuring that regulated gaming supports government programmes and services. Its challenge is to maintain that public role while managing a lower level of revenue and meeting its statutory obligations.
The first nine months of 2026 therefore leave two clear measures to watch: whether electronic gaming revenue stabilises and whether net income can recover from the combined effects of weaker earnings and higher remittances.
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Sources
Inside Asian Gaming
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