PAGCOR’s electronic-gaming revenue fell 37.23% in the first nine months of 2026, turning the segment that powered the regulator’s recent growth into the main drag on its latest financial result.
The Philippine Amusement and Gaming Corporation reported total revenue of PHP64.41 billion for January to September, down 23.41% from PHP84.09 billion a year earlier. Figures released on 29 October show gaming-operation revenue falling 23.44% to PHP58.13 billion.
This is PAGCOR’s own revenue as regulator and operator, not total Philippine industry gross gaming revenue. That distinction matters: the figures measure fees and income captured by the state corporation rather than all player stakes or operator proceeds.
E-gaming loses PHP16.4 billion
Electronic gaming remained PAGCOR’s largest gaming contributor at PHP27.63 billion, but revenue was PHP16.40 billion below the PHP44.03 billion recorded in the first nine months of 2025. Licensed-casino revenue proved more resilient, declining 3.22% to PHP23.10 billion. Casino Filipino revenue fell 8% to PHP7.28 billion, while poker revenue slipped 4.60% to PHP105.86 million.
The composition tells the commercial story. E-gaming produced 47.5% of PAGCOR’s gaming revenue during the period, down from 58% a year earlier by IGI’s calculation. The regulated digital channel is still the largest line, but its advantage over licensed casinos has narrowed from more than PHP20 billion to PHP4.5 billion.
The downturn follows tighter controls around digital gambling and payments. For continuing coverage of that operating environment, see IGI’s Payments hub and Regulation hub.
The third quarter shows partial stabilisation
The headline decline is severe, but the quarterly run-rate is less negative than the nine-month comparison suggests. PAGCOR’s first-half disclosure put e-gaming revenue at PHP18.60 billion, down 41.85%. Subtracting that figure from the nine-month result implies approximately PHP9.03 billion in third-quarter e-gaming revenue, versus about PHP12.03 billion a year earlier — a decline of roughly 25%.
That is an IGI calculation, not a quarterly figure published by PAGCOR. It indicates improvement from the first-half rate of contraction, but not a return to growth.
Net income takes a second hit
Net income dropped 84.85% to PHP2.17 billion. Lower operating revenue was compounded by a Supreme Court ruling requiring PAGCOR to remit 5% of gross revenue to the Philippine Sports Commission, which the corporation said nearly doubled its previous remittance level. PAGCOR still transferred PHP45.28 billion in statutory and nation-building contributions, including PHP27.61 billion to the National Treasury.
Our view
The result resets expectations for Philippine online gaming. Operators and suppliers should not read the third-quarter moderation as a rebound: the addressable regulated channel is operating from a materially lower base, while licensed casinos have shown much greater revenue stability. We expect the next commercial contest to centre on compliant payment access, player retention and product economics rather than the rapid top-line expansion that defined the earlier e-gaming cycle.
