The Philippine Amusement and Gaming Corp. (Pagcor) expects its income to decline to nearly Php 87 billion this year as tighter online gambling measures and the Middle East crisis weighed on gaming activity.
Pagcor Chairman and CEO Alejandro Tengco told lawmakers during a budget hearing that gaming activity dropped by about 40 percent following the separation of electronic wallets from online gambling platforms.
Tengco said the change made it more difficult for players to move funds directly into gaming platforms, contributing to weaker activity despite an increase in online gambling early in 2026.
He also attributed part of the slowdown to the Middle East crisis, which he said affected consumers in the middle- and lower-income segments that account for a significant share of online gaming activity.
Pagcor’s projected 2026 income is about Php 19.08 billion below the Php 106 billion recorded in 2025, representing a decline of roughly 18 percent.
Despite the weaker outlook, Tengco said the regulator expected gaming activity to improve during the industry’s peak season. Integrated resorts had also begun reporting an increase in tourist activity toward late July and early August.
Pagcor Assistant Vice President Cheryl de Guia said lower revenue would not prevent the agency from maintaining its contributions to government programs, with about Php 61 billion allocated for development initiatives this year.
For 2027, Pagcor is targeting income of Php 88.33 billion and plans to allocate about Php 63 billion for government development and nation-building programs.