Philippines 2Q GGR Falls 20% As Electronic Gaming Segment Weakens

The Philippine gaming industry, inclusive of non-casinos, generated gross gaming revenue of PHP88.14 billion or US$1.45 billion in the second quarter of 2026, representing a 20.3% decrease year-over-year. Gross gaming revenue grew by 0.6% sequentially, based on the press release that came out on Monday from the Philippine Amusement and Gaming Corporation.

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Electronic Gaming Drag On Quarterly Results

The decline was largely driven by weaker revenues in the electronic gaming sector, which saw revenue fall 37.2% from a year ago to PHP39.85 billion in the 3 months to June 30. The segment encompasses e-bingo, e-games, bingo grantees, and onsite and off-site poker, as per Pagcor’s classification. It accounted for circa 45.2% of aggregate GGR in the April to June period.

PAGCOR chairman and chief executive Alejandro Tengco said the decline was driven by several factors, including the impact of inflation and the geopolitical crisis in the Middle East, which weighed on consumer spending, particularly on discretionary activities.

Licensed Casinos Support Total GGR

The country’s licensed commercial-sector casinos were the biggest contributors to second-quarter GGR, at PHP45.37 billion, up 2.9% from a year earlier. The figure represented circa 51.5% of total GGR in the reporting period.

The casinos controlled by PAGCOR through its chain of Casino Filipino establishments earned almost PHP2.91 billion in GGR for the quarter to end-June, representing a drop of 5.4% from the same period in the previous year. The chain represented 3.3% of total income in the quarter.

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Tengco said PAGCOR remains committed to implementing measures that will help increase GGR and further strengthen the industry’s performance. He stated further that the regulator would continue working with its stakeholders in order for the gambling industry to be an active participant in the building of the nation.

First Half Performance and Outlook for The Year

In late July, PAGCOR announced a 26.6% decrease year-over-year in its total revenues during the first half of 2026 due to low earnings from the electronic gaming division. The latest second-quarter data is consistent with that earlier disclosure, showing continued pressure on e-games and related operations.

In June, Tengco suggested the country’s GGR could decline by as much as 19% in 2026, citing geopolitical tensions in the Middle East and their effect on consumer spending. The 20.3% drop in second-quarter GGR is in line with that earlier warning, as inflation and external risks continue to weigh on discretionary spending.

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Source: GGR Asia