Philippine Gaming Revenue Falls 11.4% as E-Gaming Drops 23%

Philippine gross gaming revenue fell 11.41% year on year to PHP83.72 billion in the third quarter of 2026, with almost the entire decline coming from electronic gaming, according to figures released by the Philippine Amusement and Gaming Corporation (PAGCOR). The Philippines remains the only Southeast Asian market with a large licensed online gaming sector, which makes its numbers a useful benchmark for neighbouring countries such as Malaysia, where online casinos have no local licence.

The industry booked PHP94.51 billion in the same quarter of 2025, so the gap is about PHP10.79 billion. The data, published on Friday 7 November, was reported by Asia Gaming Brief, citing BusinessMirror.

E-gaming accounts for nearly all of the drop

PAGCOR’s electronic gaming segment, which groups e-games, e-bingo and bingo grantees, generated PHP35.28 billion, down 22.86% from PHP45.73 billion a year earlier. That is roughly PHP10.45 billion less, or about 97% of the total quarterly contraction. The segment made up about 42.1% of national gaming revenue in the quarter.

Licensed commercial casinos, including the integrated resorts in Entertainment City, reported PHP45.38 billion, only 0.40% below last year’s PHP45.56 billion. They took 54.20% of the total and were again the single largest revenue source.

Casino Filipino, the state-run network, posted PHP3.03 billion, down 4.81% from PHP3.18 billion, about 3.6% of the total. PAGCOR has been weighing a sale of the branches as losses mount.

What PAGCOR says is behind it

PAGCOR chairman and chief executive Alejandro H. Tengco linked the weaker result to inflation and geopolitical uncertainty weighing on consumer confidence. He said those conditions had affected spending on discretionary activities, including gaming, and contributed to the weaker performance of certain segments.

The regulator is pointing to a slower rate of decline. Industry revenue fell 20.33% in the second quarter, so an 11.41% drop in the third quarter is a clear improvement. Tengco called the slower pace an encouraging development while acknowledging the challenges facing the industry.

In June, Tengco warned that full-year revenue could fall by as much as 19% in 2026. PAGCOR now expects at least PHP350 billion for the year, a figure it describes as conservative given economic conditions. Official figures and licensing notices are published on the PAGCOR website.

A split market

The quarter shows two different businesses. Land-based casinos in Manila’s Entertainment City are holding steady, while the electronic segment that grew rapidly during and after the pandemic is shrinking fast. Asia Gaming Brief separately reported that PAGCOR’s own nine-month revenue fell 23.4%, with income from e-gaming down 37%.

Licensees are responding in different ways. Integrated resort operators are pushing their own online brands, and Okada Manila’s Okada Play passed PHP100 million in October gross gaming revenue, according to a 4 November report. We covered a similar move by International Entertainment Corporation in our report on its self-run Philippine online casino.

The figures do not explain why e-gaming fell so much faster than casinos, beyond PAGCOR’s comments on consumer spending. Asia Gaming Brief did not attribute the drop to any single regulatory change, and readers should treat other explanations as unconfirmed until PAGCOR or the licensees say more.

Why it matters across the region

The Philippines is often cited in debates about whether to license online gambling elsewhere in Southeast Asia. Thailand has been discussing entertainment complex legislation, while Malaysia and Singapore keep online casinos tightly restricted and focus on blocking unlicensed sites. A licensed online market that is losing revenue this quickly will feed both sides of those debates: supporters of licensing can point to tax collection and oversight, while critics can point to how volatile that revenue has proved.

For players, the main point is unchanged. A PAGCOR licence authorises play inside the Philippines; it does not make a site legal for residents of Malaysia, Singapore or Thailand.

Do you think the Philippine e-gaming slowdown will make other Southeast Asian governments more or less willing to license online gambling? Share your view below.

Frequently Asked Questions

SafeGamingSites covers regulation and market news for players in Malaysia, Singapore and Thailand. Industry readers looking for guest posts or niche-edit placements can see iGaming Backlink, and operators needing search support can see Mediardx for iGaming SEO.