Philippine Amusement and Gaming Corporation reported an 85.29 percent drop in net income to P1.58 billion for the first half of 2026, which chairman and CEO Alejandro Tengco attributed to higher mandated remittances to the Philippine Sports Commission following a Supreme Court ruling.
PHOTOGRAPH courtesy of PAGCOR
The Philippine Amusement and Gaming Corporation (PAGCOR) has reported a 26.64 percent decline in total revenues in the first half of 2026 as lower earnings from gaming operations weighed on the state gaming agency's financial performance.
PAGCOR's total revenues reached P43.32 billion from January to June, down from P59.05 billion in the same period last year.
Revenues from gaming operations, which remained the corporation's primary revenue source, declined 27.11 percent to P38.92 billion from P53.40 billion a year earlier.
Weaker revenues from electronic gaming
PAGCOR chairman and chief executive officer Alejandro H. Tengco said the decline was largely driven by weaker revenues from the electronic gaming segment. Revenues from eGames, eBingo and bingo grantees fell 41.85 percent to P18.60 billion from P32 billion in the first half of 2025, while revenues from licensed casinos and PAGCOR-operated casinos declined 3.85 percent and 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," Mr. Tengco said.
"While market conditions improved in the second quarter, uncertainties remain, particularly with the recent uptick in global fuel prices.” he added.
“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," the PAGCOR head said.
PAGCOR's net operating income during the first semester declined 35.05 percent to P31.75 billion, while net income fell 85.29 percent to P1.58 billion.
Mandated remittances
“The steeper decline in net income was due to PAGCOR’s higher mandated remittances to the Philippine Sports Commission (PSC) following the Supreme Court's ruling requiring the state gaming agency to remit five percent of its gross income to the PSC, instead of the previously adopted computation,” Mr. Tengco said.
During the first half of the year alone, PAGCOR remitted Php2.01 billion to the PSC, up 58.68 percent from P1.26 billion in the same period last year.
Adequate contributions despite decrease in revenues
Despite the decline in revenues, PAGCOR contributed P30.16 billion to nation-building during the first six months of 2026.
Aside from the PSC, PAGCOR’s other mandated remittances included the National Government's 50 percent share (P18.49 billion); the 5 percent franchise tax (P1.94 billion); funding for socio-civic projects (P7.36 billion); host cities share (P340.05 million);
Corporate Income tax (P9.87 million); and sports incentives and benefits for winning athletes, coaches and trainers under Republic Act 10699 (P4.47 million).
The Philippine Amusement and Gaming Corporation reported an 85.29 percent drop in net income to P1.58 billion for the first half of 2026, which Chairman and CEO Alejandro Tengco attributed to higher mandated remittances to the Philippine Sports Commission following a Supreme Court ruling.
