The Philippine gaming industry could face a significant slowdown in 2026, with gross gaming revenue (GGR) projected to decline by as much as 19 percent compared to last year, according to Philippine Amusement and Gaming Corp (Pagcor) Chairman and CEO Alejandro Tengco.
Speaking on the sidelines of the SiGMA Asia Summit 2026 in Manila, Tengco said industry-wide GGR is expected to reach between PHP320 billion (US$5.19 billion) and PHP350 billion this year, down from the record PHP396.14 billion generated in 2025.
“Personally, I believe that it will be a lower GGR compared to 2025. Probably we are looking at maybe PHP320 billion to PHP350 billion,” Tengco told reporters.
Based on Pagcor’s estimates, the forecast represents a year-on-year decline of between 11.6 percent and 19.2 percent.
E-Wallet Restrictions Impact Online Gaming Growth
Tengco identified tighter regulatory measures as one of the primary factors weighing on industry performance. In particular, the directive requiring the delinking of online gambling platforms from electronic wallets (e-wallets) has affected player accessibility and acquisition, contributing to a slowdown in online gaming activity.
The regulator also noted a slight decline in the number of new players entering the market.
The impact has been especially visible in the electronic gaming segment, which recorded GGR of PHP39.9 billion in the first quarter of 2026, representing a 22.4 percent decrease compared to the same period last year.
Middle East Crisis Adds Economic Pressure
Beyond regulatory changes, Tengco pointed to broader economic challenges stemming from the ongoing conflict in the Middle East as a major contributor to the sector’s weaker outlook.
According to Tengco, rising living costs have placed increasing financial pressure on lower- and middle-income consumers, a demographic that has historically contributed significantly to online gaming revenues. As household budgets tighten, consumers are prioritizing essential expenses over discretionary spending, including gaming activities.
“But I think it is primarily because of the Middle East crisis,” Tengco said when discussing the sector’s moderating performance.
First-Quarter Results Signal Industry Slowdown
The industry’s softer momentum was already evident in the first quarter of 2026. Official figures showed Philippine gaming GGR fell 15.9 percent year-on-year to PHP87.6 billion during the period, highlighting the challenges facing operators across multiple segments.
Tengco also noted that while online gaming had previously surpassed land-based casinos as the industry’s largest revenue generator, recent economic headwinds have reversed that trend.
Analysts Expect Continued Weakness
Industry observers believe the near-term outlook remains challenging. Ser Percival Peña-Reyes, Senior Research Fellow at the Ateneo Center for Economic Research and Development, said elevated inflation, weakening consumer confidence, and slower economic growth are likely to continue weighing on gaming revenues.
“The electronic gaming segment, which was previously the main growth driver, contracted considerably in the first quarter, indicating that even digitally driven demand is becoming sensitive to macroeconomic stress,” Peña-Reyes said.
The latest projections suggest that after years of strong expansion, the Philippine gaming sector may face a period of adjustment as operators navigate stricter regulations and a more uncertain economic environment.
