The Philippine Amusement and Gaming Corp. (PAGCOR) reported a 26.64 percent decline in total revenues in the first half of 2026 as weaker gaming earnings weighed on the state gaming agency's financial performance.

From January to June, PAGCOR generated P43.32 billion in revenues, down from P59.05 billion in the same period last year.

Gaming operations remained the agency's largest revenue source but slipped 27.11 percent to P38.92 billion from P53.40 billion a year earlier.

PAGCOR chairman and chief executive officer Alejandro H. Tengco attributed the decline mainly to weaker earnings from the electronic gaming sector.

Revenues from eGames, eBingo and bingo grantees plunged 41.85 percent to P18.60 billion from P32 billion in the first half of 2025. Meanwhile, revenues from licensed casinos and PAGCOR-operated casinos declined 3.85 percentand 8.67 percent, respectively.

"Our first-half revenue results reflect the continuing impact of geopolitical tensions in the Middle East, which dampened consumer spending during the first quarter and affected overall industry performance," Tengco said.

He said market conditions improved in the second quarter but warned that uncertainties remain, particularly with the recent increase in global fuel prices.

"Nevertheless, we remain focused on strengthening industry performance through sound regulation and close collaboration with our stakeholders to ensure that the gaming sector continues to generate meaningful revenues for nation-building," he added.

PAGCOR's net operating income declined 35.05 percent to P31.75 billion, while net income fell 85.29 percent to P1.58 billion.

Tengco said the sharper decline in net income resulted from higher mandatory remittances to the Philippine Sports Commission (PSC) following a Supreme Court ruling requiring PAGCOR to remit five percent of its gross income to the PSC instead of using the previous computation.

In the first six months of the year, PAGCOR remitted P2.01 billion to the PSC, up 58.68 percent from P1.26 billion in the same period last year.

Despite the revenue decline, PAGCOR contributed P30.16 billion to nation-building during the first half of 2026.

Its mandated remittances included P18.49 billion as the National Government's 50 percent share, P1.94 billion in franchise taxes, P7.36 billion for socio-civic projects, P340.05 million for host cities, P9.87 million in corporate income tax, and P4.47 million in sports incentives and benefits for athletes, coaches and trainers under Republic Act No. 10699.