PAGCOR Projects PHP87 Billion Revenue for 2026 During Budget Hearing

Philippine Amusement and Gaming Corporation officials delivered revenue forecasts during an August 2026 House Committee on Appropriations session, and those numbers showed an expected total of approximately PHP87 billion for the full year ahead. This figure marks an 18 percent reduction compared with the PHP106.03 billion recorded in 2025, while first-half results already reflected a 26.64 percent year-on-year decline that aligned with broader operational adjustments across the sector.

Revenue Breakdown and Hearing Context

During the presentation regulators outlined how the 2026 target incorporates both licensed gaming operations and contributions from integrated resorts, yet the overall projection accounts for reduced activity in specific online segments after e-wallet services were separated from gambling platforms in late 2025. The separation produced an approximate 40 percent contraction in online gaming volumes, and that contraction now forms the primary driver behind the lower annual estimate. Committee members received supporting data that tied the decline directly to payment channel restrictions rather than changes in physical casino attendance or resort-based offerings.

Contributing Factors to the Projected Drop

Regulators also referenced external market pressures, including economic ripple effects from the Middle East conflict that have affected certain international player segments and tourism flows into Philippine gaming facilities. Those pressures appear most pronounced in high-value table games and select online offerings that previously drew cross-border participation. The combination of domestic payment adjustments and regional economic headwinds produced the cumulative 18 percent revenue reduction now embedded in the 2026 forecast, according to the figures shared at the hearing.

Observers note that the first-half 2026 performance already incorporated these twin influences, resulting in the documented 26.64 percent drop relative to the same period in 2025. Data presented during the session indicated that online gaming revenue experienced the steepest contraction, whereas land-based integrated resorts maintained steadier contribution levels despite softer demand from affected international markets.

Operational Adjustments Underway

PAGCOR representatives described ongoing measures to stabilize collections, including expanded monitoring of remaining payment channels and closer coordination with licensed operators to maintain compliance after the e-wallet delinking. Those steps aim to preserve revenue streams from domestic participants while mitigating further losses tied to the earlier policy shift. The hearing record shows that officials provided updated modeling that projects stabilization by the second half of 2026, provided no additional external shocks materialize beyond the Middle East-related impacts already factored into the outlook.

Committee discussion also touched on the broader fiscal implications for government allocations that rely on gaming remittances. The PHP87 billion target represents a measurable but contained reduction relative to prior years, and lawmakers received assurances that core operational funding and regulatory oversight functions would continue without interruption. Figures shared during the session placed the expected shortfall at roughly PHP19 billion compared with 2025 collections, a gap attributed primarily to the online segment contraction rather than any widespread downturn across all gaming verticals.

Market Segment Performance Details

Breakdowns supplied to the committee separated online gaming from traditional casino floors and electronic gaming stations. Online activity posted the largest percentage decline after the payment channel changes took effect, while physical venues showed comparatively modest reductions that aligned with seasonal tourism patterns and the noted regional economic pressures. Regulators emphasized that the 40 percent online drop occurred within a compressed timeframe following the late-2025 delinking, and subsequent months revealed partial adaptation among remaining domestic users who shifted to alternative approved methods.

The presentation further clarified that integrated resort operators continue to report stable occupancy and floor gaming volumes from local and unaffected international visitors. Those segments have offset some of the online shortfall, yet they have not fully compensated for the scale of the contraction experienced in the digital channel. Committee records indicate that PAGCOR continues to track month-by-month variances to refine the 2026 projection as additional data becomes available through the remainder of the year.

Conclusion

The August 2026 budget hearing therefore established a clear baseline for PAGCOR’s anticipated collections, and the PHP87 billion projection now serves as the reference point for legislative planning and operator compliance efforts. Subsequent updates will depend on how effectively the sector absorbs the combined effects of the e-wallet separation and external economic influences already reflected in the current forecast.