PAGCOR Says Fuel Crisis to Blame as Gaming Revenue Dips 16% in Q1

Gaming Revenue Falls Across Key Segments

Philippine Amusement and Gaming Corporation reported PHP 87.6 billion in gaming revenue during Q1 2026. That figure fell 15.9% from the same period last year. The sharpest decline came from electronic gaming operations — including E-Games and E-Bingo. Revenue from those businesses dropped 22.4% compared with Q1 2025.

PAGCOR chairman Alejandro Tengco linked the slowdown to wider economic pressures. Rising fuel costs and inflation appear to have reduced consumer spending during recent months. Middle East tensions also added pressure across several regional gaming markets. Tengco said higher oil prices may have affected travel and entertainment spending.

Licensed Casinos Remained the Largest Revenue Source

Licensed casinos generated PHP 45 billion during the quarter — more than half of total gaming revenue. Even so, the sector still lost more than PHP 4 billion year-on-year. Meanwhile, PAGCOR-operated casinos produced only PHP 3 billion during the quarter. That represented less than 4% of overall industry revenue.

The quarterly figure marked PAGCOR’s strongest casino performance since mid-2024. That result may suggest some local recovery despite weaker national numbers. Several industry pressures continue to shape the market:

• Higher fuel and transport costs

• Softer entertainment spending

• Inflation across household budgets

• Ongoing geopolitical uncertainty

Casino Sale Plans Still Face Delays

For years, PAGCOR has planned to separate its business and regulatory duties. The agency intends to sell more than 40 casino properties in future phases. However, the process still faces delays — according to recent government reviews.

The Governance Commission for Government-Owned and Controlled Corporations must first approve PAGCOR’s plans. Tengco said those discussions remain under review during 2026. The delay keeps PAGCOR in an unusual position. The agency still regulates the same industry where it operates casinos.

Beyond the casino business, PAGCOR also completed a large government payment recently. The agency remitted PHP 5.7 billion in dividends to the National Treasury last week. The payment represented half of PAGCOR’s 2025 net earnings under Philippine law.

PAGCOR Remains Hopeful Despite Market Pressure

Tengco maintained a calm tone despite weaker revenue numbers and growing costs. He said consumer confidence could recover once geopolitical tensions begin easing. Hence, PAGCOR still expects better market conditions over the longer term.

For now, however, the industry faces a difficult balance — rising costs, cautious users, and weaker discretionary spending continue affecting gaming demand across the Philippines.