PAGCOR Forecasts Lower Revenues
Dpeaking at the SiGMA Asia Summit, PAGCOR Chairman and CEO Alejandro H. Tengco said projected GGR will fall to ₱320–₱350 billion in 2026, down from ₱396.14 billion in 2025. He attributed the decline partly to the restrictions caused by the de‑linking of e‑wallets from online gambling platforms, which caused electronic gaming revenues to plunge 22.43% in the first quarter to ₱39.9 billion.
The Bangko Sentral ng Pilipinas (BSP) mandated banks and e‑wallet operators last year to remove links to gambling platforms due to restrictions, further tightening access due to restrictions imposed on online gambling.
Impact of Middle East Crisis
Tengco emphasized that the Middle East conflict has disrupted online gaming growth, which had previously outpaced land‑based casinos. Lower‑income segments, he noted, are prioritizing basic necessities over discretionary spending like gaming.
Economic Pressures Weigh on Demand
Experts warn that inflation, higher fuel costs, and weaker consumer confidence will continue to dampen gaming revenues.
Inflation surged to 7.2% in April, well above the BSP’s 2–4% target.
Rising transport and utility costs are squeezing disposable income, reducing spending on nonessential activities.
Ser Percival K. Peña‑Reyes of Ateneo’s Center for Economic Research highlighted that even digital gaming demand is showing sensitivity to macroeconomic stress, with electronic gaming contracting sharply in Q1.
Industry Performance in Q1
The slump in electronic gaming dragged overall industry GGR down 15.87% to ₱87.6 billion, compared to ₱104.12 billion a year earlier.
Colliers Research Director Joey Roi H. Bondoc expects muted revenues for the rest of 2026, citing the combined effects of the Middle East crisis, inflation, and fuel costs.
Offsetting Factors: Tourism Boost
-Despite headwinds, PAGCOR sees tourism growth as a potential cushion.
-Visitor arrivals rose 8.97% to 2.295 million in January–April.
-Chinese arrivals surged 61.73%, aided by a new 14‑day visa‑free policy.
Tengco expressed optimism that rising tourist numbers will support integrated resorts and land‑based casinos. However, arrivals from South Korea—traditionally a key market—fell 6.18%, raising concerns about diversification of tourist sources.
Outlook: Cautious Optimism
Peña‑Reyes noted that licensed integrated casinos remain resilient, contributing ₱44.5 billion (50.83% of total GGR) in Q1.
He added that if geopolitical tensions ease and oil prices stabilize, discretionary spending could recover in the second half of the year. “Overall, the near‑term outlook is cautiously optimistic,” he said. “Revenues may remain muted or volatile, but the long‑term growth story for Philippine gaming—particularly digital—remains intact once macroeconomic conditions improve.”
