The Philippine gaming industry generated P88.13 billion in gross gaming revenue in the second quarter of 2026, down 20.33 percent from P110.63 billion in the same period last year, according to the Philippine Amusement and Gaming Corporation.

PAGCOR Chairman and CEO Alejandro Tengco attributed the decline from April to June largely to weaker revenues from the electronic gaming segment, along with inflation and renewed tensions in the Middle East.

“The decline was driven by several factors, including the impact of inflation and the geopolitical crisis in the Middle East, which weighed on consumer spending, particularly on discretionary activities,” Tengco said.

Licensed casinos remained the industry’s biggest revenue contributor, generating P45.37 billion, or 51.49 percent of total GGR during the quarter.

The electronic gaming sector, which includes E-Games, E-Bingo, bingo and poker, generated P39.85 billion, accounting for 45.21 percent of the industry total.

Casinos operated by PAGCOR contributed P2.90 billion, or 3.30 percent of second-quarter GGR.

Despite the decline, Tengco said he expects the domestic gaming industry to recover as operators improve services, adopt new technologies and strengthen responsible gaming measures.

“PAGCOR remains committed to implementing measures that will help increase GGR and further strengthen the industry’s performance,” Tengco said.

“We will continue working with our stakeholders to ensure that the gaming industry remains a meaningful contributor to nation-building,” he added.

PAGCOR earlier reported that its total revenues fell 26.64 percent in the first half of 2026 due to lower earnings from gaming operations.