PAGCOR profit to drop below P5 B this year

BORACAY — The Philippine Amusement and Gaming Corp. (PAGCOR) expects its net income to fall below P5 billion this year from P17.47 billion in 2025, weighed down by higher mandatory remittances to the government’s sports agency and weaker gaming revenues amid slowing consumer spending.

PAGCOR chairman and CEO Alejandro Tengco said the state gaming regulator would be fortunate to post around P5 billion in net income, or the profit remaining after expenses and other charges, this year as additional financial obligations squeeze its earnings.

“In 2026, we’re looking at maybe less than P5 billion,” Tengco told reporters on the sidelines of the grand opening of Kaban Boracay last weekend.

He attributed the sharp decline partly to a Supreme Court ruling requiring PAGCOR to remit five percent of its gross revenues to the Philippine Sports Commission (PSC), significantly increasing the amount the agency must allocate to sports development.

Tengco estimated that the ruling would result in close to P4 billion in additional payments. In 2025, PAGCOR allocated P2.26 billion to the PSC for the National Sports Development Fund.

“Before the ruling took effect, we were giving them a monthly subsidy of about P180 million to P200 million. Now, we’re paying them about P400 million a month, sometimes P450 million,” he said.

The higher remittances have already weighed heavily on PAGCOR’s financial performance in the first half.

Latest data from the gaming regulator showed that its net income plunged by 85.3 percent to P1.58 billion from January to June, despite remaining profitable during the period.

PAGCOR’s total revenues declined by 26.6 percent to P43.32 billion in the first semester. Revenues from gaming operations, which account for the bulk of the agency’s income, slipped by 27.1 percent to P38.9 billion.

Meanwhile, remittances to the PSC reached P2.01 billion in the first six months, up 58.7 percent from P1.26 billion a year earlier.

Apart from higher mandatory contributions, Tengco said the broader gaming industry has weakened amid challenging economic conditions that have reduced consumers’ disposable income.

He noted that even high-end casino operations catering to wealthy gamblers have experienced softer demand, while electronic gaming platforms have been affected by reduced spending among lower-income consumers.

Tengco said the agency’s gaming revenue sources are now roughly split between online platforms and land-based operations, reflecting the growing importance of digital gaming to its business.

However, he noted that the decline in purchasing power among lower-income households has also affected online gaming activity.