The Philippine gaming industry recorded PHP87.60 billion ($1.42bn) in gross gaming revenue during the first quarter of 2026, down 15.87% from PHP104.12 billion in the same period last year, according to figures released by the Philippine Amusement and Gaming Corporation (PAGCOR).
The result reversed a run of annual growth that had lifted full-year 2025 GGR to PHP396.14 billion, up 6.4% on 2024.
Electronic Gaming Leads the Decline
The electronic gaming segment, covering E-Games, E-Bingo, bingo grantees, and onsite and offsite poker, generated PHP39.90 billion in Q1 2026, a 22.43% drop year-on-year. The segment accounted for 45.55% of total industry GGR, down from its position as the primary revenue driver through 2025, when it produced PHP201.12 billion for the full year.
PAGCOR linked the underperformance to regulatory measures introduced in the second half of 2025 that affected the e-games sector, alongside broader macroeconomic conditions. The Q1 results come as several major operators have reported earnings pressure across Asian markets; Evolution’s FY2025 results showed EBITDA down 9% as regulatory pressure mounted across multiple regions.
Licensed Casinos Retake Top Spot
Licensed commercial casinos contributed PHP44.52 billion in Q1 2026, representing 50.83% of total GGR, reclaiming industry leadership after electronic gaming had led the market through 2025. The figure still marked a 9.7% year-on-year decline.
PAGCOR-operated Casino Filipino properties generated PHP3.17 billion over the quarter, down 8.1% year-on-year, accounting for 3.62% of total industry revenue. No major segment reported positive year-on-year growth during the quarter.
Entertainment City and Regional Performance
Within the licensed casino segment, Metro Manila’s Entertainment City cluster posted broad declines. Bloomberry Resorts reported Q1 GGR of PHP14.67 billion, down 12.6% year-on-year, citing weaker performance at its flagship property. Okada Manila recorded PHP6.47 billion, a 17.2% year-on-year fall.
City of Dreams Manila, operated by a Melco Resorts & Entertainment subsidiary, presented a mixed result: EBITDA improved on stronger rolling chip performance while mass-market revenue declined.
Outside Manila, the Clark region generated PHP6.68 billion in GGR, against PHP7.12 billion a year earlier. The Greenfield Zone, covering rural and tourism-potential locations, was the only category to record growth, at PHP2.07 billion compared with PHP1.96 billion in Q1 2025. The fiesta casino category fell 6.8% to PHP298.1 million.
Macro Pressures
PAGCOR Chairman and CEO Alejandro H. Tengco attributed the industry’s performance to a combination of external factors.
“We attribute the first quarter dip to several factors, including softer discretionary spending amid geopolitical tensions in the Middle East and rising inflationary pressures,” Tengco said.
Philippine inflation averaged 3.9% in Q1 2026 before reaching a three-year high of 7.2% in April, driven in part by elevated oil prices tied to the Middle East conflict. Tengco noted the sector is beginning to feel the burden of rising fuel costs on business activity and consumer mobility. The Philippines’ experience echoes broader patterns seen in markets where regulatory and macroeconomic headwinds have weighed on operator performance across the Asia-Pacific region.
Dividend Remittance and Privatisation Timeline
PAGCOR remitted PHP5.67 billion ($92m) in dividends to the national government, equivalent to half of its net earnings for full-year 2025, under Republic Act 7656.
The regulator’s plan to divest its casino operations and formally separate its regulatory and commercial roles remains pending approval from the Governance Commission for Government-Owned and Controlled Corporations. Tengco confirmed in April that the review is ongoing, with no start date set for the asset sale process. The sale of more than 40 PAGCOR venues had originally been expected to begin in 2026.
Outlook
Tengco pointed to continued operator investment in integrated resort development, digital technology, and responsible gaming programs as factors supporting a recovery through the remainder of the year.
“We remain hopeful that once the geopolitical tensions stabilize, consumer confidence and discretionary spending will also gradually recover, which should help support improved industry performance,” he said.
The pace of any recovery will depend in part on the trajectory of Philippine inflation and the duration of the Middle East conflict. Both sit outside PAGCOR’s control.
Source: Philippine Amusement and Gaming Corporation
