Gaming hits snag, slumps further in Q2

MANILA, Philippines — The Philippine gaming industry remained under pressure in the second quarter of 2026 as the Middle East crisis kept tourists and high rollers away, dampening spending among e-games players as well.

Meanwhile, the gaming regulator is expected to begin its long-awaited exit from its role as an operator later this year.

“Masama (bad).”

That was how Philippine Amusement and Gaming Corp. (PAGCOR) chairman and CEO Alejandro Tengco summed up second?quarter gaming profits, battered by the prolonged US-Iran war.

“There are no tourists. There are no VIP players because of the war. Tapos tinamaan ‘yung online kasi (income) class C and D ‘yun eh, sila ‘yung tinamaan ng Middle East crisis,” he told reporters.

(There are no tourists. There are no VIP players because of the war. The online gaming sector was hit because users from income classes C and D are the groups most affected by the Middle East crisis).

Tengco noted that players in these income brackets are now prioritizing food over gaming as living costs climb.

This followed the 15.9 percent decline in gross revenues of the local gaming industry to P87.6 billion in the first quarter of 2026. This was largely driven by the weaker performance of the electronic gaming sector, which posted a 22.4-percent annual decline in GGR.

The gaming industry’s first-quarter GGR dip is due to several factors, including softer discretionary spending amid geopolitical tensions in the Middle East and rising inflationary pressures.

Tengco did not provide a GGR figure for the second quarter of 2026, and the official figures have yet to be released.

Despite this, the PAGCOR chief expects a rebound in the second half, led by the e?games sector, as tourism remains weak.

In the same interview, Tengco said the Governance Commission for GOCCs (GCG) is set to submit its recommendation to the Office of the President in August on PAGCOR’s plan to shed its operator role and privatize its casinos.

“The Office of the President will study that so it will be at the end of this year. It will be done through an Executive Order,” he added.

For its part, GCG chairperson Marius Corpus said the review is ongoing, with a recommendation likely to be released in the third quarter after completing required processes.