Declining Forecasts
The Philippine Amusement and Gaming Corp. (PAGCOR) has projected income of PHP87 billion for 2026, representing an 18% decline from the PHP106 billion collected in 2025. The forecast was presented by PAGCOR Chairman and CEO Alejandro Tengco during a budget hearing with the Philippine Congress, where he outlined the factors driving the decline and the regulator's plans for the coming year.
The reduction amounts to a PHP19.08 billion absolute decrease — a significant shortfall that will impact the funds available for national development projects. PAGCOR is one of the Philippine government's largest sources of non-tax revenue, and its contributions fund a wide range of social, infrastructure, and cultural initiatives.
- 2026 projected income — PHP87 billion
- 2025 actual income — PHP106 billion
- Decline — 18%, or PHP19.08 billion
- 2027 target — PHP88.33 billion (modest recovery)
- Nation-building allocation — PHP61 billion despite the decline
Three Factors Behind the Decline
Tengco identified three specific factors that are driving the revenue decline. Each reflects a different dimension of the challenges facing the Philippine gambling industry:
E-Wallet Delinking
The most significant factor is the delinking of electronic wallets from online gambling platforms. Philippine regulators have implemented measures to restrict the use of e-wallets — particularly GCash and similar services — for online gambling transactions. The goal is to reduce the ease with which players can deposit funds into gambling accounts, thereby reducing the volume of online gambling activity.
According to Tengco, the e-wallet delinking measures have caused a 40% drop in online gaming volumes. This is a dramatic reduction that directly impacts PAGCOR's revenue, which is derived from the gross gaming revenue of licensed operators.
Middle East Conflict
The ongoing conflict in the Middle East has had an unexpected impact on the Philippine gambling market. Many Filipino online gamblers are overseas workers, including those employed in Middle Eastern countries. The economic disruption caused by the conflict has reduced disposable income among these workers, who make up a significant portion of the online gambling customer base.
Tengco noted that most online gambling participants belong to socio-economic classes C, D, and E — the segments most vulnerable to economic shocks. The Middle East conflict has hit these segments particularly hard, reducing both the frequency and size of gambling transactions.
Online Gambling Slowdown
Beyond the specific impacts of e-wallet restrictions and the Middle East conflict, Tengco pointed to a broader slowdown in online gambling activity. This may reflect a combination of factors, including market saturation, increased regulatory scrutiny, and changing consumer behaviour.
The E-Wallet Regulation Context
The e-wallet delinking measures are part of a broader Philippine government effort to address concerns about the social impact of online gambling. E-wallets have made it extremely easy for players to deposit funds into gambling accounts — often with just a few taps on a smartphone. This convenience has contributed to concerns about problem gambling, particularly among lower-income segments of the population.
The regulatory response has been to require e-wallet providers to sever their integration with gambling platforms, forcing players to use more traditional payment methods such as bank transfers. This adds friction to the deposit process, which naturally reduces the volume of gambling activity — but also reduces PAGCOR's revenue.
This creates a policy tension: measures designed to protect players from gambling harm also reduce the revenue that funds government programmes. The 40% drop in gaming volumes from e-wallet delinking alone represents a massive reduction in activity — one that regulators believe is justified by the public health benefits, but that has significant financial consequences.
Nation-Building Despite the Decline
Despite the projected revenue decline, PAGCOR plans to allocate PHP61 billion for nation-building initiatives in 2026. This includes contributions to:
- National government programmes — funding for priority projects identified by the administration
- Social services — education, healthcare, and community development
- Infrastructure projects — transportation, utilities, and public facilities
- Cultural preservation — heritage sites and cultural programmes
The fact that PAGCOR is maintaining a high level of nation-building contributions despite the revenue decline reflects the government's reliance on gambling revenue for social spending. However, it also means that PAGCOR will have less financial flexibility to invest in its own operations and regulatory capacity.
Adapting to Payment Restrictions
The situation in the Philippines reflects a broader trend: regulation of payment channels directly impacts online gambling volumes. As governments worldwide implement stricter controls on how money flows into and out of gambling platforms, operators must adapt their payment infrastructure to remain viable.
Operators that adapt to new payment realities — including cryptocurrency payments and alternative methods — are better positioned for growth. The e-wallet delinking in the Philippines may accelerate the adoption of crypto payments, which are harder for regulators to restrict and offer faster transaction times than traditional banking methods.
Platforms like https://spinpanda.co.uk/ offer diverse deposit and withdrawal methods, ensuring resilience when traditional payment channels face regulatory restrictions. By supporting multiple payment options — from bank transfers to e-wallets to cryptocurrencies — these platforms can maintain smooth player experiences regardless of which specific payment channels are restricted by regulators.
Looking Ahead to 2027
PAGCOR's 2027 target of PHP88.33 billion represents a modest recovery of just PHP1.33 billion — or about 1.5% growth. This cautious forecast suggests that the regulator does not expect the factors driving the 2026 decline to fully reverse in the near term.
The e-wallet restrictions are likely to remain in place, and the Middle East conflict shows no signs of imminent resolution. The online gambling slowdown may stabilise as the market adjusts to the new regulatory environment, but a return to 2025 revenue levels appears unlikely in the short term.
For the Philippine gambling industry, the message is clear: the era of unconstrained growth driven by easy e-wallet deposits is over. Operators and regulators alike will need to find a new equilibrium that balances revenue generation with player protection — a challenge that gambling markets worldwide are grappling with.
Source: GamblingTimes
