Philippines Gaming GGR Falls 15.9% in 1Q26 as Electronic Segment Slows
Total gross gaming revenues for the Philippine gaming industry stood at PHP87.60 billion, or US$1.42 billion, during the first three months of 2026, a decrease of 15.9% compared to the same quarter last year. This reduction is attributed to poor performances in the gaming machines sub-sector, according to the Philippines’ gaming regulatory authority, Philippine Amusement and Gaming Corporation.
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The latest figures show that the market remained supported by licensed casinos, but overall revenue was pulled lower by softer results in the electronic side of the business. The regulator said the opening quarter reflected the impact of economic headwinds and changing market conditions.
Electronic Gaming Weakens
PAGCOR said electronic gaming revenue fell 22.4% year-on-year to PHP39.90 billion in the January to March period. The segment, which covers e-bingo, e-games, bingo grantees, and onsite and off-site poker, accounted for about 45.6% of total GGR in the quarter.
The decline in the electronic segment was a key factor behind the overall drop in the industry’s performance. While the sector still represented a large share of total revenue, the lower result showed how much it influenced the first-quarter outcome.
PAGCOR chairman and chief executive Alejandro Tengco said the quarterly performance reflected the effect of economic headwinds and evolving market conditions. He said softer discretionary spending, geopolitical tensions in the Middle East, and rising inflationary pressures were among the factors behind the dip in revenue.
Casinos Remain the Largest Source
Licensed commercial-sector casinos remained the biggest source of first-quarter gaming revenue, contributing PHP44.52 billion. This was 9.7% lower from the previous year and comprised about 50.8% of GGR in the quarter.
Meanwhile, the income reported by PAGCOR-managed casinos, which fall under the Casino Filipino category, was PHP3.17 billion in the three-month period ending March 31. This was 8.1% lower from last year and contributed 3.6% to total revenue.
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It shows that despite the weakening performance of both land-based segments, commercial casinos remain the most lucrative in terms of income contribution. The decline across these segments added to the pressure already seen in the broader industry.
Tengco Stays Optimistic
Even though the beginning of the year was weak, Tengco emphasized his optimism regarding the further performance of the sector. He stated that operators still focus on building their integrated resort offerings and adopting digital technologies and responsible gambling initiatives.
Additionally, Tengco added that when geopolitical uncertainty subsides, consumer confidence and spending are expected to gradually recover. That, he said, would help support better industry performance. His remarks suggest that the regulator still sees room for improvement later in the year if current pressures ease.
These results follow another encouraging figure for the full year of 2025. In fact, the Philippines’ gaming industry produced an impressive GGR of PHP396.14 billion in 2025, rising by 6.4% compared to 2024. The reason for this was mainly attributed to electronic gaming, which made up for weak results in traditional casino operations.
Full-Year Base Remains Higher
Revenue generated by the electronic and online segment in 2025 amounted to PHP201.12 billion, being the highest among all segments. Such a change highlighted the growing significance of alternative channels within the domestic market environment.
Unlike 2025 performance figures, in Q1 2026, revenues declined. Nevertheless, even during such a period, electronic gaming was among those segments hardest hit by the weakening economic environment, while land-based casinos remained the largest one within quarterly income.
Source: GGR Asia
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