25 Aug 2026
PAGCOR Projects Lower Revenue for 2026 Following Shifts in Online Gaming Activity
The Philippine Amusement and Gaming Corporation has outlined its income expectations for the coming year during recent budget discussions, and the numbers show a clear downward adjustment from the prior period. Officials project total income in the range of PHP86.95 billion to PHP87 billion for 2026, which marks an 18 percent reduction compared with the PHP106 billion recorded in 2025. This forecast emerged from testimony at a House Committee on Appropriations budget hearing held in late August 2026, where Chairman and CEO Alejandro Tengco presented the figures directly to lawmakers.
Breakdown of the Revenue Outlook
Data presented at the hearing attributes the anticipated drop primarily to two distinct pressures that have already begun reshaping the gaming sector. One involves a roughly 40 percent contraction in online gaming activity after electronic wallets were disconnected from gambling platforms, while the second stems from reduced participation in certain market segments tied to developments in the Middle East. Both elements combined to produce the lower overall projection, and Tengco noted that these changes reflect broader operational adjustments already underway across the industry.
Those familiar with the timeline point out that the delinking of e-wallets occurred earlier in the year, creating an immediate ripple effect on transaction volumes for online operators licensed or overseen by PAGCOR. The Middle East situation, meanwhile, has influenced travel patterns and remittance flows that historically supported specific gaming verticals, leading to softer demand in those areas during 2025 and carrying forward into the current planning cycle.
Seasonal Factors and Expected Partial Recovery
Despite the overall decline, Chairman Tengco conveyed measured confidence that peak season activity could generate some offset during the latter part of 2026. Peak periods in the Philippine gaming calendar typically align with holidays and major events that draw both local and international visitors, and observers note that these windows have historically lifted revenues across regulated segments. The agency anticipates that traditional foot traffic at land-based facilities may help stabilize portions of the income stream even while online channels remain constrained.
Figures shared during the hearing indicate that land-based operations continue to form a substantial base for PAGCOR, and any uptick in those areas during high-demand months could narrow the gap between projected and realized totals. Tengco emphasized that the agency continues to monitor real-time data on player engagement and operator compliance to refine its outlook as the year progresses.
Context Within Ongoing Regulatory Adjustments
The delinking of electronic wallets from gambling platforms represents a direct regulatory action aimed at tightening transaction pathways, and its effects have registered quickly in activity metrics tracked by PAGCOR. Operators have reported lower deposit volumes following the change, which in turn reduces the overall handle that feeds into the agency’s revenue share. This adjustment sits alongside other compliance measures that have been implemented over recent years to align the sector with updated financial oversight standards.
Meanwhile, the external influence from the Middle East has affected segments that rely on expatriate communities and related tourism corridors. Data reviewed at the hearing shows uneven impacts across different gaming formats, with some categories experiencing steeper reductions than others depending on their customer demographics. PAGCOR’s planning process incorporates these variables to produce the conservative range now under consideration for 2026 appropriations.
Agency Response and Monitoring Approach
Throughout the budget presentation, agency leadership described ongoing efforts to track both the online contraction and the regional market shifts on a month-to-month basis. Tengco indicated that PAGCOR maintains close coordination with licensed operators to gather operational statistics, allowing the regulator to identify any early signs of stabilization or further movement. This continuous review supports adjustments to internal forecasts and informs discussions with legislative bodies on funding allocations.
Those who attended the hearing observed that the agency’s presentation focused on transparency regarding the drivers behind the projection rather than on mitigation strategies at this stage. The emphasis remained on accurate representation of current conditions and the potential for seasonal recovery to influence final outcomes.
Conclusion
The revenue projection released by PAGCOR in August 2026 establishes a clear benchmark for the year ahead, grounded in measurable changes to online activity and external market conditions. With the 18 percent decline already factored into planning documents, attention now turns to how peak season performance may influence the final tally. The agency’s data collection processes will continue to provide updates that lawmakers and industry participants can reference as developments unfold.