Manila: Philippine Amusement and Gaming Corp. (PAGCOR) Chairman and Chief Executive Officer Alejandro Tengco is optimistic the local gaming sector will bounce back following a 20.3-percent drop in second-quarter 2026 revenues.

According to Philippines News Agency, Tengco cited operators' efforts to improve services, adopt technological innovations, and strengthen responsible gaming measures in a statement on Monday. "PAGCOR remains committed to implementing measures that will help increase GGR and further strengthen the industry's performance. We will continue working with our stakeholders to ensure that the gaming industry remains a meaningful contributor to nation-building," he said.

PAGCOR reported that the local gaming industry's gross gaming revenues (GGR) reached PHP88.13 billion in the second quarter of 2026, down by 20.3 percent from PHP110.63 billion in the same period last year. Tengco attributed the decline to weaker revenues from the electronic gaming segment and other factors, including renewed tensions in the Middle East.

"The decline was driven by several factors, including the impact of inflation and the geopolitical crisis in the Middle East, which weighed on consumer spending, particularly on discretionary activities," he said. PAGCOR noted that licensed casinos remained the industry's largest revenue contributor during the period, generating PHP45.37 billion, or 51.49 percent of the total GGR.

The electronic gaming sector, which includes E-Games, E-Bingo, bingo, and poker, contributed PHP39.85 billion. Meanwhile, casinos operated by PAGCOR generated PHP2.90 billion.