The Philippine gaming industry recorded PHP88.13 billion ($1.43 billion) in gross gaming revenue (GGR) during the second quarter of 2026, marking a 20.3% year-on-year decline. According to the Philippine Amusement and Gaming Corporation (PAGCOR), weaker electronic gaming revenue primarily drove the downturn.
The Q2 figure fell from PHP110.63 billion ($1.80 billion) recorded during the same period in 2025. PAGCOR Chairman and CEO Alejandro H. Tengco attributed the decline to weaker electronic gaming activity, inflation, and renewed geopolitical tensions in the Middle East, which affected discretionary consumer spending.
Commercial Casinos Remain the Largest Contributor
Licensed commercial casinos continued to generate the largest share of the Philippine gaming market. They produced PHP45.37 billion ($737 million) during Q2, accounting for 51.5% of total industry GGR.
Meanwhile, electronic gaming generated PHP39.85 billion ($648 million), representing 45.2% of total GGR. This segment includes eGames, eBingo, traditional bingo, and poker.
PAGCOR-operated casinos contributed a further PHP2.90 billion ($47.2 million), or 3.3% of total industry revenue.
Therefore, although commercial casinos maintained their leading position, the overall market remained under pressure as electronic gaming activity weakened significantly.
Electronic Gaming Remains Under Pressure
The latest quarterly results follow similar weakness in PAGCOR’s first-half financial performance. In late July, the regulator reported that total revenue fell 26.6% year-on-year to PHP43.32 billion ($704 million) during the first six months of 2026.
Gaming operations revenue declined 27.1% to PHP38.92 billion ($633 million). More notably, revenue collected from eGames, eBingo, and bingo licensees dropped 41.9% to PHP18.60 billion ($302 million).
The figures highlight the growing impact of electronic gaming weakness on the broader Philippine gaming market.
PAGCOR Focuses on Recovery
Despite the decline, Tengco said PAGCOR will continue working with industry stakeholders to improve services, adopt new technology, and strengthen responsible gaming measures.
As the Philippine gaming industry navigates weaker electronic gaming demand and broader economic pressures, these initiatives could play an important role in supporting market recovery during the second half of 2026.
