Philippine Gaming Regulator Balances Projected Revenue Decline with Uncompromised Commitments to Nation-Building Projects
The Philippine Amusement and Gaming Corporation (PAGCOR) anticipates generating approximately PHP87 billion in income for 2026, navigating a landscape characterized by weaker gambling activity, broader economic pressures from the Middle East crisis, and targeted government measures designed to curb gambling.
During a congressional budget hearing, PAGCOR Chairman and CEO Alejandro Tengco reported that regulatory changes, specifically the delinking of e-wallets from online gambling platforms, have significantly reduced accessibility and slowed sector momentum. According to Tengco, removing direct e-wallet integration made online wagering less convenient, resulting in a 40% decline in gaming activity.
Impact of E-Wallet Changes and Economic Pressures
While online gaming saw a temporary surge during early 2026, its positive financial impact on PAGCOR was constrained by the Middle East crisis. Tengco explained that the majority of online gamblers originate from middle-income and working-class demographics (the C, D, and E market segments), which were disproportionately affected by the economic fallout of the international conflict, thereby muting the recovery of digital wagering.
Consequently, PAGCOR’s projected 2026 income represents an 18% reduction, or a drop of PHP19.08 billion, compared to the record PHP106 billion realized in 2025.
However, regulatory leadership remains optimistic about a potential recovery during the upcoming gaming peak season. Tengco noted a slight upward trend in integrated resort tourism toward the end of July and early August, which could help offset weaker revenues recorded during the first half of the year.
Maintaining Nation-Building Allocations and 2027 Outlook
Despite the anticipated dip in revenue, PAGCOR Assistant Vice President Cheryl de Guia confirmed that the agency will not scale back its contributions to national development. PAGCOR plans to allocate approximately PHP61 billion for development projects throughout 2026.
Looking ahead to 2027, PAGCOR has established an income target of PHP88.33 billion, accompanied by an increased nation-building allocation of PHP63 billion. While the projected 2027 figures remain below the record highs achieved in 2025, they underscore the regulator’s ongoing commitment to balancing fiscal adjustments with vital national infrastructure and community programs.
