In the third quarter of 2026, the Philippine gaming industry recorded a Gross Gaming Revenue (GGR) of 83.72 billion pesos (approximately US$1.33 billion), an 11.4% decline compared to the same period in 2025, driven largely by a significant downturn in the electronic gaming sector.
According to data released by the Philippine Amusement and Gaming Corporation (PAGCOR), gaming industry revenue for the three months ending September 30 fell by 5% compared to the previous quarter. For context, the industry’s total revenue during the same period in 2025 stood at 94.51 billion pesos.
The electronic gaming sector was the primary driver of this year-on-year decline. This segment—which encompasses electronic bingo, electronic games, and licensed bingo operators—generated 35.28 billion pesos for the quarter, down approximately 23% from the 45.73 billion pesos recorded in the same period last year.
The 10.45 billion peso drop in electronic gaming revenue accounted for the bulk of the industry’s overall contraction. During the reporting period, this segment contributed approximately 42.1% of the Philippine gaming industry’s total revenue.
Alejandro Tengco, Chairman and CEO of PAGCOR, attributed this weak performance to the pressure that the macroeconomic environment has placed on consumer spending.
As reported by the Manila Bulletin, Tengco stated: “These economic factors have impacted spending on non-essential activities—including gaming—leading to weaker performance in certain segments.”
Electronic gaming remains the most significant area of weakness.
The decline in the electronic gaming sector has been more pronounced than that seen within the Philippines’ domestic licensed commercial casino industry.
Inflationary pressures and geopolitical uncertainties have strained household budgets, prompting individuals to cut back on non-essential expenditures. Tengco had previously identified these factors as risks facing the Philippine gaming market in 2026. In June 2026, he noted that total gross gaming revenue (GGR) for the year could decline by as much as 19%, driven by geopolitical tensions in the Middle East and their potential impact on consumer spending.
However, the latest quarterly data indicates that the industry’s contraction has slowed compared to earlier this year. Philippine GGR fell by 20.3% year-on-year in the second quarter, while the decline in the third quarter was 11.4%.
“We recognize the challenges facing the industry, but the easing of the decline in the third quarter is an encouraging sign,” said Tengco.
Nevertheless, a downward trend remains evident on a quarter-on-quarter basis, with GGR in the third quarter of 2026 falling by 5% compared to the previous three months.
The electronic gaming sector has shown weakness—a notable shift, given that this segment previously accounted for a significant share of the Philippine gaming market. Despite a year-on-year decline in revenue, electronic gaming still contributed more than 40% of total GGR in the third quarter.
Licensed casinos have demonstrated greater stability.
Licensed commercial casinos generated 45.38 billion Philippine pesos in GGR during the third quarter, making them the largest revenue source for the Philippine gaming industry for that period.
With revenue falling by only 0.4% from the 45.56 billion Philippine pesos recorded in the same period last year, these commercial casinos have proven more stable than the electronic gaming sector. They account for approximately 54.2% of the industry’s total GGR.
Casinos under the “Casino Filipino” brand—operated by the Philippine Amusement and Gaming Corporation (PAGCOR)—contributed 3.03 billion Philippine pesos, a 4.8% decrease from the 3.18 billion Philippine pesos reported a year earlier. These venues represent about 3.6% of the overall market.
The data shows that the industry’s decline in the third quarter was concentrated primarily in the electronic gaming sector, rather than across all operational categories. Performance among licensed commercial casinos remained largely flat compared to the same period last year, and they continue to command the largest share of total GGR. The disparity between these two segments has also influenced the industry’s overall performance. Compared to the same period last year, revenue from electronic gaming operations fell by 10.45 billion Philippine pesos, while revenue from commercial casinos remained relatively stable.
PAGCOR views the slowing rate of decline as a positive sign.
While acknowledging that the industry continues to face a challenging environment, PAGCOR noted that the year-on-year decline in the third quarter was less pronounced than in the second, suggesting that the pace of the industry’s deterioration has begun to ease. The regulator intends to continue working with licensed operators while upholding regulatory requirements and responsible gaming standards.
Tengco stated:
“We will continue to work closely with our licensees to improve industry performance, while ensuring that all gaming activities are conducted responsibly and in compliance with regulatory standards.”
Consequently, the third-quarter figures reflect a complex landscape for the Philippine market. Total Gross Gaming Revenue (GGR) was not only lower than in the same period last year but also declined relative to the previous quarter—with electronic gaming operations remaining the primary driver of this revenue loss.
In contrast, licensed commercial casinos experienced only a marginal year-on-year decline and continue to account for more than half of the total Gross Gaming Revenue.
The industry’s performance for the remainder of 2026 will determine how closely the final annual results align with Tengco’s earlier warning—that total annual Gross Gaming Revenue could potentially decline by as much as 19%.
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