The Philippine Amusement and Gaming Corporation (PAGCOR) has reported a significant decrease in revenue and profits for the first nine months of 2026. The state-run regulator and operator recorded total revenue of PHP64.41 billion (approximately US$1.01 billion), marking a 23.4% year-on-year decline. The sharpest drop was seen in electronic gaming, which weighed heavily on PAGCOR’s overall financial performance.
Electronic Gaming Drives Down Revenues
Electronic gaming emerged as the primary factor behind the downturn, with revenues in this segment plummeting 37.2% to PHP27.63 billion. Licensed casino revenue, while more resilient, also saw a decrease of 3.2% to PHP23.10 billion. PAGCOR’s own Casino Filipino operations generated PHP7.28 billion, down 8% from the previous year, and poker revenue slipped by 4.6% to PHP105.86 million.
Rising Costs and Higher Contributions Impact Profits
PAGCOR’s profitability was further strained by increased expenses and statutory contributions. Total expenses rose by 3% to PHP19.86 billion. Pre-tax profit dropped 31% to PHP44.55 billion, and net income saw a steep fall of 85%, landing at PHP2.17 billion (about US$34 million). The decline in net income was partly attributed to a Supreme Court ruling from October 2025, which mandated PAGCOR to remit 5% of its gross revenue to the Philippine Sports Commission, nearly doubling its previous contribution requirement.
Ongoing Commitment to Regulation and Nation-Building
Despite weaker financial results, PAGCOR stated it remains focused on its regulatory duties and sustainable operations. The organisation contributed PHP45.28 billion to nation-building programmes and statutory obligations during the reporting period, including PHP27.61 billion remitted to the National Treasury. PAGCOR’s leadership reaffirmed its commitment to responsible operations and upholding regulatory standards for the Philippine gaming industry.
Why This Matters for Industry Stakeholders
The decline in PAGCOR’s revenues and profits signals potential challenges for operators, affiliates, and suppliers in the Philippine gaming sector. Lower electronic gaming income may reflect shifting player preferences or increased competition, while higher statutory contributions could influence the financial strategies of both PAGCOR and its licensees. The regulator’s continued focus on compliance and sustainability highlights the importance of adapting to evolving regulatory and market conditions.
Key takeaways
- PAGCOR’s total revenue fell 23.4% year-on-year for the first nine months of 2026.
- Electronic gaming revenue dropped 37.2%, driving the overall decline.
- Net income decreased 85%, partly due to higher mandated contributions.
- The results underscore the need for industry adaptation to regulatory and market shifts.
Update (03.11.2026)
DigiPlus also experienced a 17% year-on-year drop in net gaming revenue after tax, totaling PHP16.2 billion for the first nine months of 2026. Despite this, the company improved its EBITDA margin to 22% and reported a slight increase in Q3 EBITDA to PHP2.9 billion. DigiPlus saw growth in user engagement, with average monthly active users up 3% quarter-on-quarter to 5.9 million, and monthly active bettors and depositors rising 5% to 4.9 million. The operator paid PHP13.9 billion in taxes and regulatory fees during the period, with its NGR after-tax margin now at 40%. Industry stakeholders highlighted the impact of stricter advertising rules and the removal of payment options from GCash, while the ongoing economic downturn has been linked to supply chain disruptions caused by the US-Iran conflict. Keith McDonnell of KMI Group cautioned that excessive taxes and regulations could drive more activity into the grey market.