Philippine GGR Could Fall 19% in 2026, PAGCOR Chief Warns

PAGCOR Expects Revenue To Drop

The Philippine gaming industry may take a hit this year. The gross gaming revenue (GGR) could be between PHP320 billion and PHP350 billion in 2026, according to PAGCOR Chairman and Chief Executive Alejandro Tengco. That will be a drop from the PHP396.14 billion recorded in 2025.

At the bottom of that range, there could be a decline of approximately 19% in the market. The prediction follows a number of years of robust expansion. Over the years, online gaming has expanded rapidly and has become the largest sector of the gaming industry.

The market is now under new pressures, said Tengco. These problems could lead to lower year-end player spending.

Higher Costs Are Hitting Consumers

Many households are having to spend additional money on their daily needs. The price of food, transport and other essentials are higher. Tensions in the Middle East also may be impacting the broader economy, Tengco said. When consumers are uncertain, it can lead to being more careful about spending.

The primary contributor to industry growth was online gaming, but this has now been replaced. But, recent trends indicated that the sector's growth is in a downward trend.

First Quarter Results Show A Slower Market

The weaker market was already clear in the first quarter of 2026. Gaming revenue fell 15.9% compared with the same period last year. The decline raised concerns about the rest of the year. Several factors are affecting the market:

• Changes involving online gaming and e-wallet services

• Slower growth in new player numbers

• Higher living costs for many families

More Pressure Could Follow

There are economists who feel that the market could continue to be under pressure for a while. There is still high inflation in many places. Consumer confidence also seems somewhat diminished. Economic growth has not been as brisk as anticipated.

The transportation and fuel costs are still an issue. If money is tight at home, the first expense that's cut is usually entertainment. It's not too late for a recovery. Consumer confidence will need to rise, and inflation will have to drop to see gaming revenue start to rise again.

Operators and regulators are getting ready for a challenging year for now. Growth can be more difficult than in the past. The next few months will tell whether this slowdown is merely a blip or a more extended shift in the Philippine gaming landscape.