Licensed casinos have regained their position as the largest contributor to Philippine gaming revenue after online and electronic gaming overtook the land-based sector for the first time in 2025.
Philippine gaming gross gaming revenue reached PHP88.13bn (US$1.45bn) during the second quarter of 2026, down 20.33% from the corresponding period last year.
Licensed casinos generated PHP45.37bn ($746m), accounting for 51.49% of total GGR.
Electronic gaming, including e-games, e-bingo, bingo and poker, produced PHP39.85bn ($655m) and represented 45.21% of the market.
Casinos operated directly by the Philippine Amusement and Gaming Corporation contributed the remaining 3.30%.
The second-quarter figures continue a shift that began during the opening three months of the year.
Licensed casinos generated PHP44.52bn ($732m) in the first quarter, representing 50.83% of industry GGR, compared with PHP39.90bn ($656m) and a 45.55% share for electronic gaming.
That represents a reversal from 2025, when online and electronic gaming became the Philippines’ largest gaming segment for the first time.
The digital sector accounted for 50.77% of full-year GGR in 2025 after revenue increased 30.04%, while licensed casino revenue declined 9.58%.
PAGCOR chairman and chief executive officer Alejandro Tengco said earlier this year that weaker discretionary spending, inflationary pressure and geopolitical tensions in the Middle East were affecting gaming activity.
Tengco said: “We attribute the first quarter dip to several factors, including softer discretionary spending amid geopolitical tensions in the Middle East, and rising inflationary pressures.”
The slowdown in electronic gaming has also affected PAGCOR’s own financial performance.
Revenue received by the regulator from eGames, eBingo and bingo grantees fell 41.85% to PHP18.60bn ($306m) during the first half of 2026, compared with PHP32bn ($526m) a year earlier.
PAGCOR’s total first-half revenue declined 26.64% to PHP43.32bn ($712m).
Tengco said market conditions improved during the second quarter but warned that economic uncertainty remained.
The latest figures suggest the rapid shift towards digital gaming seen during 2024 and 2025 has moderated, with licensed casinos again generating the largest share of Philippine gaming revenue during the first half of 2026.
Online gaming nevertheless remains substantially larger than it was before its recent expansion and continues to account for more than 45% of the regulated market.
