PAGCOR has hailed signs of recovery in the Philippines’ gaming market, but revenue remains down for the third successive quarter.
The country’s gaming regulator reported that the market returned gross gaming revenue (GGR) of P83.7bn (£985.2m) in the third quarter of 2026, down 11.41% from P94.5bn (£1.11bn) in Q3 2025.
However, PAGCOR’s Chair and Chief Executive Officer, Alejandro Tengco, said a slower pace of decline is an ‘encouraging development’ for a market that continues to be affected by the economic downturn caused by tensions in the Middle East.
For comparison, GGR fell 15.87% and 20.3% year-on-year in Q1 and Q2, respectively.
Tengco emphasised that inflationary pressures and geopolitical uncertainties continue to impact consumer spending on discretionary activities.
He added: “These conditions have affected spending on discretionary activities, including gaming, and contributed to the weaker performance of certain segments.”
In each quarter, most of the revenue decline has come almost exclusively from the electronic gaming sector.
In Q3, GGR from the sector dropped 22.86% year-on-year to P35.28bn (£415.3m) (Q3 2025: P45.73bn). On the other hand, GGR from licensed casinos remained stable, at P45.4bn (£534.4m).
These results mean licensed casinos now account for 54.2% of total industry revenues, underscoring that electronic gaming is more exposed to wider economic trends and lacks the insulation provided to land-based venues by international tourists and wider resort visitors.
Tengco said: “We will continue to work closely with our licensees to strengthen industry performance while ensuring that gaming activities are conducted responsibly and in accordance with regulatory standards.”
Potential tax troubles ahead
Amid these challenges, the threat remains of further financial burdens in the form of a tax on online gaming that the Department of Finance is considering.
Former Executive Secretary Ralph Recto originally suggested the policy last year as the debate over the future of online gaming ramped up. Finance Undersecretary Karlo Adriano told local reporters that any proposal will need Finance Secretary Frederick’s approval before it goes to President Marcos for consideration.
According to DigiPlus, the country’s largest operator, the company’s financial NGR after-tax margin, measured against gross gaming revenue, now sits at 40%, and it paid P13.9 billion in taxes and regulatory fees through the first nine months of 2026.
Further levies would add pressure to a licensed sector that continues to contend with a black market that still attracts about 50% of total spend.
Don’t forget to subscribe to our Telegram channel!
