MANILA — The Philippine Amusement and Gaming Corp. (PAGCOR) has set a minimum net income after tax target of P4.87 billion for 2026, substantially below the P17.46 billion it earned in 2025, according to its 2025 annual report.

The regulator noted that the P4.866-billion figure is a minimum performance target under its 2026 strategic roadmap and does not represent a forecast of full-year earnings, according to the report. The floor sits about 72% below the 2025 result — a gap wide enough to accommodate the headwinds management itself has flagged for the year ahead. As a government-owned and controlled corporation, PAGCOR remits a portion of its income to the national government, which is why its annual targets draw attention well beyond the agency itself.

Alongside the income goal, PAGCOR is targeting at least P97.556 billion in income from gaming operations in 2026, about 2.5% higher than the P95.14 billion recorded in 2025. The same roadmap sets a P410.166-billion gross gaming revenue (GGR) target for the Philippine gaming industry — implying growth of roughly 3.5% over last year's actual — covering licensed operators as well as casinos run by PAGCOR itself.

Tengco says industry may miss 2026 GGR target

Chairman and Chief Executive Officer Alejandro H. Tengco said last week that the industry could miss its GGR target for 2026 as geopolitical tensions weigh on consumer spending and tighter restrictions on online gambling curb activity.

Among the measures affecting the online gaming sector, PAGCOR cited the de-linking of electronic wallets from gaming platforms, which disrupted player access and payment channels in 2025. The unlinking followed directives issued that year by the Bangko Sentral ng Pilipinas ordering digital payment providers to cut their links to online gambling sites. The open question for 2026 is whether electronic and online gaming — the engine of 2025's growth — can keep expanding under those curbs.

2025 profit rises despite lower revenues

The regulator's net income rose 4.18% to P17.46 billion in 2025 from P16.76 billion a year earlier, even as revenues declined, according to the annual report. Total revenues fell 5.09% to P106.03 billion from P111.71 billion, as earnings from land-based casinos weakened and offshore gaming was no longer part of the revenue mix, the report showed. The offshore segment's exit followed the government's order for Philippine offshore gaming operators to shut down their operations by the end of 2024.

Gaming revenues slipped to P95.14 billion from P97.52 billion in 2024, according to PAGCOR. More than half of that amount — P53.33 billion — came from electronic games, electronic bingo, and bingo grantees, up 9.3% from a year earlier. Revenues from PAGCOR-operated casinos fell 18.12% to P10.37 billion, while licensed casinos contributed P31.44 billion, down 4.93%.

Industry GGR up 6.39% on electronic, online gaming

At the industry level, GGR rose 6.39% to P396.13 billion in 2025 from P372.33 billion in 2024, driven by electronic and online gaming, which offset weaker earnings from land-based casinos, PAGCOR said.

Other licensees — including electronic games, electronic bingo, bingo grantees, and onsite and offsite poker — generated P201.11 billion in GGR last year, up 30.04% from P154.65 billion in 2024 and accounting for 50.77% of total industry GGR, according to the report. That share, up from roughly 41.5% a year earlier, was enough to overtake licensed casinos as the industry's largest revenue segment. Licensed casinos generated P182.50 billion, down 9.58%, while PAGCOR-operated casinos posted P12.52 billion, down 20.95%.

Restructuring proposal awaits government review

Mr. Tengco also said last week that PAGCOR is a decision from the Governance Commission for Government-Owned or -Controlled Corporations on its proposal to separate its regulatory and commercial functions — a restructuring that would end the agency's current dual role as both the industry's regulator and a casino operator in its own right. Once the commission completes its review, the proposal will be endorsed to the Office of the President for evaluation, he said. The GCG's ruling is the near-term milestone to watch before any restructuring can advance.

— J.I.D. Tabile, BusinessWorld

Source: BusinessWorld